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

Respuesta :

Given:
Original cost of contributed equipment : 125,000

Accumulated depreciation of contributed : 100,000

Value of similar equipment : 150,000

Agreed upon valuation of contributed equipment : 29,000

The amount that should be debited to the equipment account is 29,000.

It is the current value of the contributed equipment as agreed upon by the partners.