Question: Sampson and Stevens form a partnership. Sampson contributes land with a book value of $50,000 and a fair market value of $65,000. Sampson also contributes

Sampson and Stevens form a partnership. Sampson contributes land with a book value of $50,000 and a fair market value of $65,000. Sampson also contributes equipment with a book value of $52,000 and a fair market value of $57,000. The partnership assumes a $20,000 mortgage on the land. What should be the balance in Sampson’s capital account upon formation of the partnership?

Step by Step Solution

★★★★★

3.44 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The Sampsons capital account should be in form of capital La... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

47-B-A-P (285).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The Poughkeepsie Development Corporation (PDC) is trying to complete its investment plans for the next five years. Currently PDC has $4.9 million available for investment. Furthermore, PDC expects...

You are given the following selected financial information for The Blatz Corporation. Income Statement Balance Sheet COGS $750 Cash $250 Net Income $160 Net fixed assets $850 Ratios ROS 10% Current...

A company has an inventory with a book value of $4,583,231, which includes 116 product lines and a total of 326,432 units. How many items compose this population for purposes of applying a...

A machine with a book value of $48,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,000 and replace it with a new machine at a cost of $62,000. The new...

Brent Houghton and Dick Kreibach are considering a business venture. They ask you to explain the advantages and 1 disadvantages of the partnership form of organization. Why might a company choose to...

Sampson and Stevens form a partnership. Sampson contributes land with a book value of $50,000 and a fair value of $65,000. Sampson also contributes equipment with a book value of $52,000 and a fair...

With a new child I missed my seminar this week. I did go back and review the recorded seminar but I still don't fully understand it. Any help on these is very much appreciated. ***I do not have...

With a new child I missed my seminar this week. I did go back and review the recorded seminar but I still don't fully understand it. Any help on these is very much appreciated. Question 1 Newland and...

QUESTION Far Market V5/2000) Edda 000 Maris ( Asted - 324000 FMV4000 CAA V-52644000) As a resulthidation has 524.000 Ordinary income and 1.20.000 Capital No Record Gain or loss 540.000 Ordinary...

1. Don is cash basis doctor who contributes the following to a partnership for a 1/3 interest: Accounts receivable with -0- basis and FMV of 200 and accounts payable of 150 and a -0- basis. Is it...

1) 2) 3) On May 1, four parTners, T. John, W. BenT, 6. HunT and S. AlgaTe, decide To sTarT up a parTnership by invesTing $32 500 each. Record The general Journal enTry To esTablish The parTnership....

Using the following data and the straight-line method of depreciation, compute depreciation expense and make the necessary journal entry to record depreciation expense for the first year. Cost of...

1 Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. 2 Why do U.S Treasury bills have lower interest rates than large- denomiation negotiable...

Find the derivative of the function. Simplify if possible. y = square root 1 7 arctanx

The general ledger of Lawson Lumber Co. contains the following control account: If the materials charged to the one uncompleted job still in process amounted to $3,400, what amount of labor and...

Through a "Type C" reorganization, Springer Corporation was merged into Spaniel Corporation last year. Springer shareholders received 40% of the Spaniel stock in exchange for all of their Springer...

Townsend, the sole shareholder of Pruett Corporation, has a $480,000 basis in his stock. He exchanges his Pruett stock for $600,000 of Rogers voting common stock plus land with a fair market value of...

The cost of the trading securities of Munoz Company at December 31, 2014, is $64,000. At December 31, 2014, the fair value of the securities is $59,000. Prepare the adjusting entry to record the...

Do males or females feel more tense or stressed out at work? A survey of employed adults conducted online by Harris Interactive on behalf of the American Psychological Association revealed the...

Show that if Sn is a binomial random variable, then for k = 1, 2, ...,n, P{Sn = k} = (n k + 1)p k(1 p) P{Sn = k 1}.

The situations presented here are independent of each other. Instructions For each situation prepare the appropriate journal entry for the redemption of the bonds. (a) Garland Corporation retired...

Edmonds, Inc. reports the following liabilities (in thousands) on its January 31, 2010, balance sheet and notes to the financial statements. Instructions (a) Identify which of the above liabilities...

McDonald's 2006 financial statements contain the following selected data (in millions). Instructions (a) Compute the following values and provide a brief interpretation of each. (1) Working capital....

Please, solve with Excel. You are the financial adviser to three individuals, a Young person with high risk tolerance, a Middle aged person with medium risk tolerance and an old person with low risk...

3. If the generally interest rates in the economy decrease significantly but the rate on a consumer's ARM loan remains high due to floors, what is the borrower likely to do in the absence of a...

Question 5 of 12 (1 point) Attempt 1 of 1 |View question in a popup @1h 49m Remaining 6.2 Section Monthly Mortgage Payments The average monthly mortgage payment including principal and interest is...