In 2017, Jerely and Ryan agreed to contributeequal amounts into a new partnership for 52:48 interest...

 

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In 2017, Jerely and Ryan agreed to contributeequal amounts into a new partnership for 52:48 interest in profit (loss) and incapital, respectively. Their respective contributions will come from oldproprietorships they owned and will both be dissolved. Jerely contributed thefollowing items and amounts: Cash Machineries (at book value per proprietorship record) Ryan contributed the following items at theircarrying amounts in the proprietorship records: Accounts receivable Inventory Furniture and fixtures Intangibles 585,000 400,000 75,000 210,000 402,000 172,500 The two partners haveagreed that: • 6,000of the accounts receivable are uncollectible • The inventoriesare overstated by 15,000 • The furnitureand fixtures are understated by 9,000 • Theintangibles include a patent with a carrying value of 10,500, which must now bederecognized due to the result of unsuccessful litigation promulgated by thecourt just before the partnership formation. Whatis the fair value of the machineries invested by Jerely into the partnership? Act Whatis the fair value of the machineries invested by Jerely into the partnership? Blank 1 What is the capital credit of Jerely uponformation? Blank 2 What is the capital credit of Ryan uponformation? Blank 3 Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer In 2017, Jerely and Ryan agreed to contributeequal amounts into a new partnership for 52:48 interest in profit (loss) and incapital, respectively. Their respective contributions will come from oldproprietorships they owned and will both be dissolved. Jerely contributed thefollowing items and amounts: Cash Machineries (at book value per proprietorship record) Ryan contributed the following items at theircarrying amounts in the proprietorship records: Accounts receivable Inventory Furniture and fixtures Intangibles 585,000 400,000 75,000 210,000 402,000 172,500 The two partners haveagreed that: • 6,000of the accounts receivable are uncollectible • The inventoriesare overstated by 15,000 • The furnitureand fixtures are understated by 9,000 • Theintangibles include a patent with a carrying value of 10,500, which must now bederecognized due to the result of unsuccessful litigation promulgated by thecourt just before the partnership formation. Whatis the fair value of the machineries invested by Jerely into the partnership? Act Whatis the fair value of the machineries invested by Jerely into the partnership? Blank 1 What is the capital credit of Jerely uponformation? Blank 2 What is the capital credit of Ryan uponformation? Blank 3 Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer

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Step 1 Partnership is one of the form of business organisation und... View the full answer