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Safari File Edit View History Bookmarks Window Help Take a Test-Aleandra Navo @|https al www.mathxl.com/Student/PlayerTest.aspx?testid» oo 0 ?| | + : y Appeals IXL-Family membership Alexandr ACC1200-SU2018 Quiz: HW2 CH12 Submit Quitz This Question: 1 pt 5 of 32 This Quiz: 32 pts possible Ackers and Black form a partnership. Ackers contributes $5,000 cash and merchandise inventory with a current market value of $68,000. Black contributes $4,500 in cash and land with a current market value of $38,000 (cost of $23,000). Which of the following is correct? O A. Black, Capital is credited for $27,500. O B. Black, Capital is credited for $42,500. O C. Black, Capital is debited for $27,500. D. Black receives a bonus of $38,000 from Ackers. Click to select your answer

Explanation / Answer

Capital contribueted by Black is as below,

Cash contributed against the partnership capital = $ 4,500

Land (Cost $ 38,000) ; Market Value = $ 38,000

Acker contributed also in cash and inventory at market value so Black's land is also taken at market value

Total Capital of Black's = $ 4,500 + $ 38,000 = $ 42,500

Answer = Option B = Black, Capital is credited for $ 42,500

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