Thomas and Richard formed the Happy Go Lucky Partnership four years ago. Because they decided the company
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Thomas and Richard formed the Happy Go Lucky Partnership four years ago. Because they decided the company needed some expertise in multimedia presentations, they offered Sarah a 1/3 interest in partnership capital and profits if she would come to work for the partnership. On July 1 of the current year, the unrestricted partnership interest (fair market value of $225,000) was transferred to Sarah. How should Sarah treat the receipt of the partnership interest in the current year? Remember that Sarah is just contributing her services!
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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