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Assets $100,000 240,000 Cash Marketable Securities Inventory 150,000 Land 160,000 Building - Net 800,000 Total Assets 1,450,000

Assets $100,000 240,000 Cash Marketable Securities Inventory 150,000 Land 160,000 Building - Net 800,000 Total Assets 1,450,000

FINANCIAL ACCOUNTING
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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Assets Cash $100,000 Marketable Securities 240,000 Inventory 150,000 Land 160,000 Building - Net 800,000 Total Assets 1,450,000 Equities $850,000 Sam,, Capital Norm, Capital 450,000 Woody, Capital 150,000 Total Equities 1,450,000 The partners agree to admit Dianne for a one-tenth interest. The Fair Market Value for the partnership land is $360,000 and the Fair Market Value of the inventory is $300,000 Required: 1) Record the entry to revalue the partnership assets prior to the admission of Dianne 2) Calculate how much Dianne will have to invest to acquire a 10% interest 3) Assume the partnership assets are not revalued. If Dianne paid $400,000 in exchange for a 10% interest in the partnership, what is the bonus that is allocated to each partner's capital account?
Transcribed Image Text:Assets Cash $100,000 Marketable Securities 240,000 Inventory 150,000 Land 160,000 Building - Net 800,000 Total Assets 1,450,000 Equities $850,000 Sam,, Capital Norm, Capital 450,000 Woody, Capital 150,000 Total Equities 1,450,000 The partners agree to admit Dianne for a one-tenth interest. The Fair Market Value for the partnership land is $360,000 and the Fair Market Value of the inventory is $300,000 Required: 1) Record the entry to revalue the partnership assets prior to the admission of Dianne 2) Calculate how much Dianne will have to invest to acquire a 10% interest 3) Assume the partnership assets are not revalued. If Dianne paid $400,000 in exchange for a 10% interest in the partnership, what is the bonus that is allocated to each partner's capital account?
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