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RECOMMENDED!!ACC 116-Michael is investing in a partnership with Monica

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Michael is investing in a partnership with Monica. Michael’s contribution as part of his initial investment is: Accounts Receivable $80,000, Allowance for Doubtful Accounts of $12,000, and Cash $15,000. Michael’s initial contribution in the partnership has the following entry:Question 1 options:A. debit to Accounts Receivable for $78,000B. credit to Michael, Capital $83,000C. debit to Allowance for Doubtful Accounts for $12,000D. credit to Michael, Capital $92,000In the partnership formed by Felix and Cristy, he is investing a truck with a book value of $15,000 and a fair value of $12,000. Cristy is investing a building with a book value of $40,000 and a fair value of $55,000 with a mortgage of $20,000. Determine the amount that Cristy’s capital account should be recorded at.Question 2 options:A. $28,000B. $40,000C. $55,000D. $20,000Cristy and Elizabeth are entering into a partnership. Cristy contributes equipment that originally cost $65,000, but now has a book value of $10,000 and a fair value of $14,000. Determine the entry that the partnership makes to record Cristy’s initial contribution.Question 3 options:A. credit to Accumulated Depreciation for $55,000B. debit to equipment for $55,000C. debit to equipment for $65,000D. debit to equipment for $14,000In the partnership formed by Felix and Cristy, he is investing a truck with a book value of $15,000 and a fair value of $12,000. Cristy is investing a building with a book value of $40,000 and a fair value of $55,000 with a mortgage of $20,000. Determine the amount the building should be recorded at.Question 4 options:A. $15,000B. $20,000C. $40,000D. $55,000Identify the item that should not be considered an expense of a partnership when determining income for Year 2014.Question 5 options:A. Salary expense to partnersB. Insurance expenseC. Supplies expenseD. Transportation expense

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