A and B (AB partnership) decide to form a partnership. A already has a business in operation and he transfers the following business items into the partnership. $6,000 Cash Inventory Equipment Accumulated Depreciation Liabilities $60,000 $62,000 14,000 $52,000 40,000 Also, the following information is available about A's business assets. The inventory has a current market value of 18,000; the equipment has a current value of 38,000; and there are 2,000 of unrecorded liabilities that the partnership assumes. Mr B contributes 20,000 cash to the partnership. What is the value of total assets brought by A that will be recorded in the partnership? (10,000) 20,000

A and B (AB partnership) decide to form a partnership. A already has a business in operation and he transfers the following business items into the partnership. $6,000 Cash Inventory Equipment Accumulated Depreciation Liabilities $60,000 $62,000 14,000 $52,000 40,000 Also, the following information is available about A's business assets. The inventory has a current market value of 18,000; the equipment has a current value of 38,000; and there are 2,000 of unrecorded liabilities that the partnership assumes. Mr B contributes 20,000 cash to the partnership. What is the value of total assets brought by A that will be recorded in the partnership? (10,000) 20,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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