4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory 15,000 Building 40,000 Furniture & Equipment 15,000 The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership? Roberts Smith a. $35,000 $85,000 b. $35,000 $75,000 C. $55,000 $55,000 d. $60,000 $60,000
4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory 15,000 Building 40,000 Furniture & Equipment 15,000 The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership? Roberts Smith a. $35,000 $85,000 b. $35,000 $75,000 C. $55,000 $55,000 d. $60,000 $60,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:4. Roberts and Smith drafted a partnership agreement
that lists the following assets contributed at the
partnership's formation:
Contributed by
Roberts Smith
Cash
$20,000
$30,000
Inventory
15,000
Building
40,000
Furniture & Equipment
15,000
The building is subject to a mortgage of $10,000,
which the partnership has assumed. The partnership
agreement also specifies that profits and losses are to
be distributed evenly. What amounts should be
recorded as capital for Roberts and Smith at the
formation of the partnership?
Roberts Smith
a.
$35,000 $85,000
b.
$35,000 $75,000
C.
$55,000 $55,000
d.
$60,000 $60,000
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