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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Hw.114.
Transcribed Image Text: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
$52,000
14,000
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?
$50,000
40,000
(10,000)
20,000
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