5.Charlie and Brown form a partnership and invest thefollowing assets and liabilitiesFair Market Value CarryingValueMaryCashLandS 50,000$50,00040,00070,000DawnCashBuildingMortgage Payable16,000100,00016,00090,000(60,000)(60,000)Assuming that the partners will share income andlosses equally, prepare the entry to record theformation of the partnership.

The non cash assets invested by partners are recorded at fair market value, and liabilities related…

5. Charlie and Brown form a partnership and invest the following assets and liabilities Fair Market Value Carrying Value Mary S 50,000 70,000 $50,000 40,000 Cash Land Dawn Cash Building Mortgage Payable 16,000 100,000 (60,000) 16,000 90,000 (60,000)

5. Charlie and Brown form a partnership and invest the following assets and liabilities Fair Market Value Carrying Value Mary S 50,000 70,000 $50,000 40,000 Cash Land Dawn Cash Building Mortgage Payable 16,000 100,000 (60,000) 16,000 90,000 (60,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

5.
Charlie and Brown form a partnership and invest the
following assets and liabilities
Fair Market Value Carrying
Value
Mary
Cash
Land
S 50,000
$50,000
40,000
70,000
Dawn
Cash
Building
Mortgage Payable
16,000
100,000
16,000
90,000
(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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