1. For accounting purposes, when a partner invests assets in a partnership, how is the value of the assets determined? Is this practice consistent with the cost principle? Explain your reasoning.

2. One type of partnership described is Limited Partnerships. Describe what a limited partnership is and how it differs from a general partnership. Can you find any “real-world” examples of a limited partnership? Why do you think that a business would choose to organize as a limited partnership?

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