Culver invests personally owned equipment, which originally cost $224700 and has accumulated depreciation of $59900 in the Culverand Eggers partnership. Both partners agree that the fair value of the equipment was $119700. The entry made by the partnership torecord Culver's investment should beEquipmentAccumulated Depreciation-EquipmentCulver, Capital22470059900164800Equipment119700Culver, Capital119700Equipment164800Culver, Capital164800Equipment119700Loss on Purchase of Equipment45100Accumulated Depreciation-Equipment 59900Culver, Capital224700

Partnership is a formal agreement made by two or more parties to jointly manage and operate a…

Culver invests personally owned equipment, which originally cost $224700 and has accumulated depreciation of $59900 in the Culver and Eggers partnership. Both partners agree that the fair value of the equipment was $119700. The entry made by the partnership to record Culver's investment should be O Equipment Accumulated Depreciation-Equipment Culver, Capital 224700 59900 164800 Equipment 119700 Culver, Capital 119700 Equipment 164800 Culver, Capital 164800 Equipment 119700 Loss on Purchase of Equipment 45100 Accumulated Depreciation-Equipment 59900 Culver, Capital 224700

Culver invests personally owned equipment, which originally cost $224700 and has accumulated depreciation of $59900 in the Culver and Eggers partnership. Both partners agree that the fair value of the equipment was $119700. The entry made by the partnership to record Culver's investment should be O Equipment Accumulated Depreciation-Equipment Culver, Capital 224700 59900 164800 Equipment 119700 Culver, Capital 119700 Equipment 164800 Culver, Capital 164800 Equipment 119700 Loss on Purchase of Equipment 45100 Accumulated Depreciation-Equipment 59900 Culver, Capital 224700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A, B and C decided to form ABC Partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. B will contribute a land and building with book value of P2,400,000 and fair market value of P3,000,000. The land and building is subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. They agreed that C will contribute sufficient cash to the partnership. A day after the partnership formation, the equipment was sold for P 600,000. What is the amount of cash contributed by C?
None
Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners.Upon liquidation of the partnership, property will be distributed to the partners in accordance with their § 704(b) book capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600. a. Calculate the…
Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount of $6,000 After the exchange, Harglo would record its newly acquired land on its books ata. $120,000b. $102,000c. $136,000d. $166,000
Hoyle Company owns a manufacturing plant with a fair value of $4,600,000, a recorded cost of $8,500,000, and accumulated depreciation of $3,650,000. Patterson Company owns a warehouse with a fair value of $4,400,000, a recorded cost of $6,900,000, and accumulated depreciation of $2,800,000. Hoyle and Patterson exchange assets, with Hoyle also receiving cash of $200,000 from Patterson. The exchange is considered to have commercial substance. Required: Record the exchange on the books of: Hoyle Patterson
DEF partners, whose capital balances totaled P 400,000 decided to admit G who invested P 120,000 cash for a 20% interest. The partners agree to revalue the assets. This will result to Asset revaluation for G of P 20,000 Asset revaluation of P80,000 for D, E, and F O agreement is invalid Asset impairment of P20,000 for D, E, and F
In a like - kind exchange, Greyland exchanged investment - use real property (FMV $210,000, adjusted basis $190,000) for a smaller piece of investment - use property (FMV $200,000) plus $10,000. They will report a $10,000 gain on the exchange. What is their basis in the replacement property? $170,000 $180,000 $190,000 $200,000
A partner contributed land to a partnership that was originally purchased for $50,000 but has a current market value of $90,000. The entry to record the investment is ?
Immediately prior to its termination, the ABC Partnership owned the following assets: Inside Basis FMV Cash $ 92,000 $240,000 Accumulated Depreciation $100,000 $ 64,000 $92,000 $100,000 Equipment Capital asset $50,000 Fis a 60% owner with an outside basis in his interest of $177,600. Calculate F's basis for each asset received in the distribution. 3.
New Partner A and New Partner B are both proprietor who decided to form a partnership on July 22, 2022. New Partner A contributed cash, inventory and equipment worth P300,000, P500,000, and P800,000, respectively, while New Partner B contributed an equipment and Inventory worth P400,000 of P1,200,000. Both partners agree that the assets contributed were undervalued thereby increasing the value of inventory by 20% and the equipment by 10%. How much is the capital of the New Partnership?
Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $124,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $56,000 and was appraised at $180,000. The land was also encumbered with a $56,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: $ 480,000 470,000 70,000 1,500 600 Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions 300 Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) 300 3,000 c. Using the…
Malik Edson has the following assets: • Land with ACB of $60,000 Building with a cost of $105,000, and UCC of $79,000. Malik sells both of land and building in a single transaction for $219,000. The estimated FMV of each was: • Land: $146,000 • Building: $73,000 How much capital gain and terminal loss will Malik realize on this transaction? Choose the correct answer. A. capital gain of $73,000, terminal loss of $32,000 B. capital gain of $73,000, terminal loss of $6,000 C. capital gain of $54,000, terminal loss of $0 D. capital gain of $80,000, terminal loss of $0