Question - Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to the partnership. The following information regarding the asset to be contributed by Minor is available:
Historical cost of the asset$276,000
Accumulated depreciation on the asset$140,000
Note payable secured by the asset and assumed by the partnership$118,000
Agreed-upon market value of the asset$245,000
Based on this information, Minor's beginning equity balance in the partnership will be:
$276,000
$158,000
$136,000
$127,000
$18,000