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Question: dalworth and minor have decided to form a partnership minor...

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Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to the partnership. The following information regarding the asset to be contributed by Minor is available:

Historical cost of the asset $ 78,000
Accumulated depreciation on the asset $ 41,000
Note payable secured by the asset* $ 20,000
Agreed-upon market value of the asset $ 46,000


Based on this information, Harvey's beginning equity balance in the partnership will be:

Multiple Choice

  • $26,000

  • $37,000

  • $46,000

  • $20,000

  • $78,000

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