Question: A and B form a partnership; each contributes $500. They share all profits and losses equally. AB's initial Book Basis balance sheet is as

A and B form a partnership; each contributes $500. They share all profits and losses equally. AB's initial

A and B form a partnership; each contributes $500. They share all profits and losses equally. AB's initial Book Basis balance sheet is as follows: Liabilities & Capital Cash Assets $1,000 Capital - A Capital - B Initial Transaction - The partnership buys a building for $1,200, paying $300 cash and giving an $900 mortgage for the balance. AB also invested some of the cash in some stock ($200) and bonds ($200). What does AB's balance sheet look like after these transactions? $500 $500

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