Stokely and Leder are forming a partnership. Stokely invests in a building that has a market value of $250,000; and the partnership assumes responsibility for a $50,000 note secured by a mortgage on that building. Leder invests $100,000 cash. For the partnership, the amounts recorded for the building and for Stokely’s capital account are: a. Building, $250,000; Stokely, Capital, $250,000. b. Building, $200,000; Stokely, Capital, $200,000. c. Building, $200,000; Stokely, Capital, $100,000. d. Building, $200,000; Stokely, Capital, $250,000. e. Building, $250,000; Stokely, Capital, $200,000.
Stokely and Leder are forming a partnership. Stokely invests in a building that has a market value of $250,000; and the partnership assumes responsibility for a $50,000 note secured by a mortgage on that building. Leder invests $100,000 cash. For the partnership, the amounts recorded for the building and for Stokely’s capital account are: a. Building, $250,000; Stokely, Capital, $250,000. b. Building, $200,000; Stokely, Capital, $200,000. c. Building, $200,000; Stokely, Capital, $100,000. d. Building, $200,000; Stokely, Capital, $250,000. e. Building, $250,000; Stokely, Capital, $200,000.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
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Question
Stokely and Leder are forming a
in a building that has a market value of $250,000; and
the partnership assumes responsibility for a $50,000 note
secured by a mortgage on that building. Leder invests
$100,000 cash. For the partnership, the amounts recorded
for the building and for Stokely’s capital account are:
a. Building, $250,000; Stokely, Capital, $250,000.
b. Building, $200,000; Stokely, Capital, $200,000.
c. Building, $200,000; Stokely, Capital, $100,000.
d. Building, $200,000; Stokely, Capital, $250,000.
e. Building, $250,000; Stokely, Capital, $200,000.
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