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
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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 building 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 building be recorded?
2- What amount should be recorded in Laura's capital account?
3- What amount should be recorded in James' capital account?
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Transcribed Image Text: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 building 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 building be recorded? 2- What amount should be recorded in Laura's capital account? 3- What amount should be recorded in James' capital account? Essay Toolbar navigation BI U S A
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