Question

When two proprietors decide to combine their businesses and form a partnership, gaap usually requires that noncash assets be taken over at their _______ on the date of the partnership.
a. residual value
b. book value
c. fair market value
d. historical cost

Answer 1

When proprietors decide to combine their business and form a partnership, gaap usually requires that non cash assets be taken over at : C. fair market vale
The data will be used to calculate the percentages of ownership of each combined companies

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