Question

when property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account

Answer 1

Answer:

It should be credited at the amount of the fair value at the date when the property is invested in a partnership.

Explanation:

The non cash property should be credited at the amount of its fair value on the date of the investment, so if someone wants to invest their building in a partnership it will be recognized at the fair value decided between the investor and the partnership owners at the date at which it is invested.