Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also a sole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to be taken by the partnership at their respective book value. Gideon is to contribute cash equal to 1/2 of the total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’s cash contribution should be
Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also a sole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to be taken by the partnership at their respective book value. Gideon is to contribute cash equal to 1/2 of the total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’s cash contribution should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also a
sole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to be
taken by the
the total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’s
cash contribution should be
A. 100,000
B. 150,000
C. 200,000
D. 300,000
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