Question: Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnerships formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory

Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership’s formation:

Contributed by Roberts Smith Cash $20,000 $30,000 Inventory -- 15,000 Building -- 40,000 Furniture & equipment 15,000 --

The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly.

What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership?

Roberts Smith

a. $35,000 $85,000

b. $35,000 $75,000

c. $55,000 $55,000

d. $60,000 $60,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Model Based Testing For Embedded Systems Questions!

5. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory 0 15,000...

4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Cash Inventory Building Furniture & Equipment Contributed by Roberts...

1. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnerships formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory -- 15,000...

Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnerships formation: Contributed by Roberts Smith Cash $20,000 $30,000 Inventory -- 15,000...

Robert and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Robert contributed Cash P20,000, and P15,000 Furniture and Fixture. Smith...

. Robert and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Robert contributed Cash P20,000, and P15,000 Furniture and Fixture....

Select the correct answer for each of the following questions. 1. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the...

1. Billy, Vhong and Jhong have average capital balances during the year of P1 ,000,000, P400,000, and P1,200,000 respectively. They are paid 10% interest on their average capital balance, each...

In a Fourth of July celebration, a firecracker is launched from ground level with an initial velocity of 25.0 m/s a! 30.00 From the vertical. At its maximum height it explodes in a starburst into...

What is net force on the dipole inside the capacitor if the plates are separated by 1 centimeter and the magnitude of the charges is 1 micro-coulomb? 16 V 202 4uf 2

Consider the following methods that could be resorted to for hedging foreign exchange exposure: 1 . International diversification of operations; 2 . Interest rate futures contracts; 3 . Leading and...

What do you think is your strongest component of cultural intelligence? Your weakest? How would you go about shoring up your weaknesses?