Shaun and Rick are partners. Shaun has a capital balance of $0,000

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January 6th, 2018

Shaun and Rick are partners. Shaun has a capital balance of $0,000 and Rick has a capital balance of $8,000. Edwin invests a building with a current market value of $6,000 to acquire an interest in the new partnership. Which of the following is true of the effect of the transaction on the balance sheet? (Assume no bonus to any partner.)Both assets and liabilities will decrease by $6,000.Both assets and equity will increase by $6,000.Both assets and equity will decrease by $6,000.Both assets and liabilities will increase by $6,000.

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