Bob is investing in a partnership with Jerry.Bob contributes equipment that originallycost P63,000, has a book value of P30,000,and a fair market value of P39.000. Theentry that the partnership makes to recordBob's initial contribution includes a *O debit to Equipment for P33,000.debit to Equipment for P63,000.debit to Equipment for P39,000credit to Accumulated Depreciation forP33,000.

Business will consider the fair market of the equipment as the business is a separate entity and so…

Answered: Bob is investing in a partnership with…

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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Patel and Rao decide to form a partnership. Patel contributes $250, 000 in cash. Rao contributes buildings and equipment with a fair market value of $500,000, subject to a mortgage of $100,000, which the partnership assumes. If the goodwill approach to partnership formation is used, Rao's initial capital balance is:
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $ 1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership Minimum Gain ( PMG)? Please don't use any AI. It's strictly prohibited. Help me out asap Thanks
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership
Anthony is investing in a partnership with Joseph. Anthony contributes equipment that originally cost $43000, has a book value of $20900, and a fair value of $25400. The entry that the partnership makes to record Anthony's initial contribution includes a O debit to Equipment for $22100. ○ credit to Accumulated Depreciation for $22100. O debit to Equipment for $43000. O debit to Equipment for $25400.

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