With a partnership, there is no limitation on legal liability.

True or false

A partnership is subject to federal income taxes.

True or false

Which of the following is not a characteristic of a limited liability company?

a. moderate ability to raise capital

b. unlimited life

c. limited legal liability

d. taxable

As part of the initial investment, Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account?

a. $100,000

b. $29,000

c. $125,000

d. $150,000

As part of the initial investment, Ray Blake contributes equipment that had originally cost $116,800 and on which accumulated depreciation of $87,600 has been recorded. If similar equipment would cost $159,000 to replace and the partners agree on a valuation of $41,900 for the contributed equipment, what amount should be debited to the equipment account?

a. $159,000

b. $31,425

c. $41,900

d. $116,800