Question

As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated depreciation of $75,975 has been recorded. If similar equipment would cost $158,400 to replace and the partners agree on a valuation of $51,500 for the contributed equipment, what amount should be debited to the equipment account

Answer 1

Answer:

This is a repeat question on Brainly but here you go.

$51,500

Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent

So, the equipment amount should be debited at $51,500 instead of the original cost or the replacing cost