Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and $20,000 in inventory. Minnie contributes $8,000 in cash and land with a current market value of $60,000. The land originally cost $30,000. Minnie also brings over a $20,000 liability to the partnership. Which of the following is correct? Select one: O a. Minnie, capital is credited for 68,000 O b. Winnie, capital is debited for 25,000 c. Minnie, capital is credited for 48,000 O d. Winnie, capital is credited for $5,000
Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and $20,000 in inventory. Minnie contributes $8,000 in cash and land with a current market value of $60,000. The land originally cost $30,000. Minnie also brings over a $20,000 liability to the partnership. Which of the following is correct? Select one: O a. Minnie, capital is credited for 68,000 O b. Winnie, capital is debited for 25,000 c. Minnie, capital is credited for 48,000 O d. Winnie, capital is credited for $5,000
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 8MCQ
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Transcribed Image Text:Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and
$20,000 in inventory. Minnie contributes $8,000 in cash and land with a
current market value of $60,000. The land originally cost $30,000. Minnie
also brings over a $20,000 liability to the partnership. Which of the following
is correct?
Select one:
O a. Minnie, capital is credited for 68,000
b. Winnie, capital is debited for 25,000
c. Minnie, capital is credited for 48,000
O d. Winnie, capital is credited for $5,000
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