Harvey and Quick Have Decided to Form a Partnership Based on This Information,Harvey's Beginning Equity Balance in the Partnership

Harvey and Quick have decided to form a partnership.Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to the partnership.The following information regarding the asset to be contributed by Harvey is available:
$$\begin{array} { l l } \text { Historical cost of the asset } & \$ 76,000 \\\text { Accumulated depreciation on the asset } & \$ 40,000 \\\text { Note payable secured by the asset* } & \$ 18,000 \\\text { Agreed-upon market value of the asset } & \$ 45,000 \\\\ *\text { will be assumed by the partriership }\end{array}$$
Based on this information,Harvey's beginning equity balance in the partnership will be:

A) $76,000
B) $36,000
C) $18,000
D) $27,000
E) $45,000

Correct Answer:

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