On January 1, 2024, Males contributes land in a partnership with Phillips. Males purchased the land in 2019 for $100,000. A real estate appraiser now values the land at $425,000. Males wants $425,000 capital in the ne partnership, but Phillips objects. Phillips believes that Males's capital contribution should be measured by the book value of his land. Phillips and Males seek your advice. Read the requirements Requirement 1. Which value of the land is appropriate for measuring Males's capital-book value or current market value? Males's capital contribution of land should be valued at Requirement 2. Give the partnership's journal entry to record Males's contribution in the business. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
On January 1, 2024, Males contributes land in a partnership with Phillips. Males purchased the land in 2019 for $100,000. A real estate appraiser now values the land at $425,000. Males wants $425,000 capital in the ne partnership, but Phillips objects. Phillips believes that Males's capital contribution should be measured by the book value of his land. Phillips and Males seek your advice. Read the requirements Requirement 1. Which value of the land is appropriate for measuring Males's capital-book value or current market value? Males's capital contribution of land should be valued at Requirement 2. Give the partnership's journal entry to record Males's contribution in the business. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 58P
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Transcribed Image Text:On January 1, 2024, Males contributes land in a partnership with Phillips. Males purchased the land in 2019 for $100,000. A real estate appraiser now values the land at $425,000. Males wants $425,000 capital in the new
partnership, but Phillips objects. Phillips believes that Males's capital contribution should be measured by the book value of his land. Phillips and Males seek your advice.
Read the requirements.
Requirement 1. Which value of the land is appropriate for measuring Males's capital-book value or current market value?
age
Males's capital contribution of land should be valued at
ur
Requirement 2. Give the partnership's journal entry to record Males's contribution in the business. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts and Explanation
Debit
Credit
Requirements
2024
Jan. 1
1. Which value of the land
value or current market value?
appropriate for measuring Males's capital-book
2. Give the partnership's journal entry to record Males's contribution in the
business.
Print
Done
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