What is the journal entry to record the formation of the partnership? Charlie and Brown form a partnership and invest the following assets and liabilities Fair Market Value Carrying Value Mary Cash $ 50,000 $50,000 Land 70,000 40,000 Dawn Cash 16,000 16,000 Building 100,000 90,000 Mortgage Payable (60,000) (60,000) Assuming that the partners will share income and losses equally, prepare the entry to record the formation of the partnership.
What is the journal entry to record the formation of the partnership? Charlie and Brown form a partnership and invest the following assets and liabilities Fair Market Value Carrying Value Mary Cash $ 50,000 $50,000 Land 70,000 40,000 Dawn Cash 16,000 16,000 Building 100,000 90,000 Mortgage Payable (60,000) (60,000) Assuming that the partners will share income and losses equally, prepare the entry to record the formation of the partnership.
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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What is the
Charlie and Brown form a partnership and invest the following assets and liabilities
|
Fair Market Value |
Carrying Value |
Mary |
|
|
Cash |
$ 50,000 |
$50,000 |
Land |
70,000 |
40,000 |
|
|
|
Dawn |
|
|
Cash |
16,000 |
16,000 |
Building |
100,000 |
90,000 |
Mortgage Payable |
(60,000) |
(60,000) |
Assuming that the partners will share income and losses equally, prepare the entry to record the formation of the partnership.
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