Henry jones contributed equipment, inventory, and $57,300 cash to a partnership. the equipment had a book value of $27,800 and market value of $34,100. the inventory had a book value of $46,700 but only had a market value of $10,400 due to obsolescence. the partnership also assumed a $14,900 note payable owed by henry that was originally used to purchase the equipment. what amount should be recorded to henry's capital account?
a.$86,900
b.$123,200
c.$146,700
d.$116,900

A. $86,900

Explanation:

Henry’s capital account will be credited by the amount of $86,900. See computation below.

Cash $57,300

Equipment 34,100

Inventory 10,400

Note payable (14,900)

————

Total $86,900

*Both the equipment and the inventory will be recorded on partnership’s book at fair market value at the time of contribution.

*The partnership may absorb the obligation if it is associated with an asset contributed by partner. Thus, it will be deducted to his capital account as contribution to the partnership.

answer$225.00;