Answered: Austin Fisher contributed land,…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 55P

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Question

Austin Fisher contributed land, inventory, and $31,000 cash to a partnership. The land had a book value of $71,000 and a market value of $128,000. The inventory had a book value of $72,400 and a market value of $67,300. The partnership also assumed a $51,000 note payable owed by Fisher that was used originally to purchase the land.

Required:

Provide the journal entry for Fisher's contribution to the partnership. If an amount box does not require an entry, leave it blank.

		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
		fill in the blank 8	fill in the blank 9
		fill in the blank 11	fill in the blank 12
		fill in the blank 14	fill in the blank 15

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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