James and Laura are forming a partnership. James will Invest a truck with a book value of $10,000 and a fair market value of $14,000. Laura will Invest a bullding with a book value of $30,000 and a fair market value of $42,000 with a mortgage of $15,000. Answer the following questions: 1- At what amount should the bullding be recorded? 2- What amount should be recorded in Laura's capital account? 3- What amount should be recorded in James' capital account?

James and Laura are forming a partnership. James will Invest a truck with a book value of $10,000 and a fair market value of $14,000. Laura will Invest a bullding with a book value of $30,000 and a fair market value of $42,000 with a mortgage of $15,000. Answer the following questions: 1- At what amount should the bullding be recorded? 2- What amount should be recorded in Laura's capital account? 3- What amount should be recorded in James' capital account?

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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