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Crazy boy [7]
3 years ago
12

Isis and Kelsey are forming a partnership. Isis will invest a piece of equipment with a book value of $7,500 and a fair market v

alue of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000.
Required:
a. What amount will be recorded to Isis's capital account?
Business
2 answers:
asambeis [7]3 years ago
8 0

Answer:

$18,000

Explanation:

The amount that should be recorded to Isis's capital account is the fair market value of the assets acquired by her, regardless of the book value. Since Isis bought a piece of equipment with a fair market value of $18,000, and that is her only known contribution in the partnership, the amount that should be recorded to Isis's capital account is $18,000.

WITCHER [35]3 years ago
6 0

Answer:

$18000 will be recorded to Isis's capital account.

Explanation:

Although Isis's book value is $7500, but Isis's contribution will be considered at fair market value which is $18000.

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Tamiku [17]

Answer and Explanation:

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3 years ago
Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and cos
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Answer:

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Explanation:

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3 years ago
Longhorn Company reports current E&P of $100,000 in 20X3 and a deficit of ($200,000) in accumulated E&P at the beginning
ikadub [295]

Answer: Dividend of $100,000, Capital Gain of $100,000 and Tax Free Return on basis of $100,000

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