Anders and Becker form a partnership Anders contributes 5000

Anders and Becker form a partnership. Anders contributes $5,000 cash and merchandise inventory with a current market value of $25,000. Becker contributes $2,000 in cash and land with a current market value of $18,000 (cost of $3,000). Which of the following is correct? O A. Becker, Capital is credited for $5,000. O B. Becker, Capital is debited for $5,000 C. O D. Becker, Capital is credited for $20,000. Becker receives a bonus of $18,000 from Anders.

Solution

The Option C - Becker, Capital is credited for $20,000 is correct

Below is the calculation of Capital balance:

Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.

Capital Account balance
	Anrers	Becker
Cash	$          5,000	$          2,000
Inventory	$        25,000
Land		$        18,000
Total	$        30,000	$        20,000