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Problem 1: Which of the following is not a characteristic of a limited liability company?
a. moderate ability to raise capital
b. unlimited life
c. limited legal liability
d. taxable
Problem 2: As part of the initial investment, Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account?
a. $100,000
b. $29,000
c. $125,000
d. $150,000
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