Nathan long is entering into a partnership with terri. nathan is investing $2,000 in cash and equipment currently on nathan’s books at $6,000, with an accumulated depreciation of $1,000. the equipment has a fair market value of $4,000. the entry to record nathan’s investment should be which of the following?
a. debit cash $2,000; debit equipment $6,000; credit accumulated depreciation $1,000; credit nathan’s capital $7,000
b. debit cash $2,000; debit equipment $6,000; credit accumulated depreciation $2,000; credit nathan’s capital $6,000
c. debit nathan’s capital $6,000; debit accumulated depreciation $2,000; credit cash $2,000; credit equipment $6,000
d. debit cash $2,000; debit equipment $4,000; credit nathan’s capital $6,000