FREE Trial

How does a newly formed partnership handle the contribution of previously depreciated assets? A. Continues the depreciation

Question:

How does a newly formed partnership handle the contribution of previously depreciated assets?
A. Continues the depreciation life as if the owner had not changed
B. Starts over, using the contributed value as the new cost basis
C. Shortens the useful life of the asset per the partnership agreement
D. Does not depreciate the contributed asset

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 66% (12 reviews)

So how does a newly formed partnership under the contribution ...View the full answer


answer-question
Answered By
tutor-profile-image
Marvine Ekina
Marvine Ekina Dedicated and experienced Academic Tutor with a proven track record for helping students to improve their academic performance. Adept at evaluating students and creating learning plans based on their strengths and weaknesses. Bringing forth a devotion to education and helping others to achieve their academic and life goals.   PERSONAL INFORMATION Address: , , Nationality: Driving License: Hobbies: reading SKILLS ????? Problem Solving Skills ????? Predictive Modeling ????? Customer Service Skills ????? Creative Problem Solving Skills ????? Strong Analytical Skills ????? Project Management Skills ????? Multitasking Skills ????? Leadership Skills ????? Curriculum Development ????? Excellent Communication Skills ????? SAT Prep ????? Knowledge of Educational Philosophies ????? Informal and Formal Assessments
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Principles Of Accounting Volume 1 Financial Accounting

Principles Of Accounting Volume 1 Financial Accounting

ISBN: 9781593995942

1st Edition

Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax

See More Books
Question Posted:
See More Questions

Related Video

Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

Students also viewed these Business questions

The Physics Of Amorphous Solids 1st Edition - ISBN: 0471019682 - Free Book