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As part of the initial investment, a partner contributes office equipment that o...


Question

As part of the initial investment, a partner contributes office equipment that originally cost ₦20,000 and on which provision for depreciation of ₦12,500 had been recorded. If the partners agree on a valuation of ₦9,000 for the equipment, what amount should be debited to the office equipment account?

Options

A)
₦7,500
B)
₦9,000
C)
₦12,500
D)
₦20,000

The correct answer is B.


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