Renea and Stephen agreed to go into partnership. Renea was a sole trader and her business's statement of financial position before the formation of the partnership was:

Renea is to transfer her business's assets and liabilities to the partnership, subject to the following conditions:

• Renea should discharge the payables using her business's funds.

• She should keep the business's vehicle for her private use.

• The premises should be valued at $450 000.

What was Renea's capital contribution to the new partnership?

A. $445,000

B. $465,000

C. $474,000

D. $494,000

Transcribed Image Text:

Renea Statement of financial position $ Premises 330 000 Capital 374 000 Vehicle 29 000 Bank loan 40 000 hventory 40 000 Trade payables 20 000 Bank 35 000 434 000 434 000