A partnership is formed by two partners, Jesse and Joey. Jesse contributes $75,000 and Joey contributes a
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A partnership is formed by two partners, Jesse and Joey. Jesse contributes $75,000 and Joey contributes a building. The building had a fair value of $150,000 and a net book value of $100,000. Income and losses from the partnership are to be split evenly between the partners. Which of the following would form part of the journal entry for the initial capital contributions by the partners?
A. DR Capital, Jesse $75,000
B. CR Capital, Joey $150,000
C. CR Gain on transfer $50,000
D. CR Capital, Joey $100,000
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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