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Dmitry [639]
3 years ago
15

Rodriguez and Ying start a partnership on July​ 1, 2019. Rodriguez contributes $ 3 comma 600 ​cash, furniture with a current mar

ket value of $ 48 comma 000​, and computer equipment. The computer equipment originally cost $ 48 comma 000 in 2017 with recorded accumulated depreciation of $ 27 comma 000. The current market value of the computer equipment is $ 15 comma 000. At what value should the computer equipment be recorded in the accounting records of the​ partnership?
Business
1 answer:
rodikova [14]3 years ago
7 0

Answer:

$15,000

Explanation:

The value that the computer equipment should be recorded in the accounting records of the​ partnership is the fair value

When calculating the value of a partner's share in a partnership, we use the Asset Approach .

The approach calculates <u>net asset value by subtracting the fair market value of the business's liabilities from the fair market value of its assets</u>.

Hence in the scenario, the applicable value for the computer equipment will be the fair value of $15,000

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