this is partnership fomation   1.  the asset contribution of the partnership, and any related liabilities assumed by the partnership, are recorded in the partnership a. historical cost b. carrying amount c. fair value. 2. A and B agreed to form a partnership. A contributes cash, 600,000, inventory 20,000, half if the inventory is unpaid, the partnership agreed to assume the related accounts payable, equipment 50,000. B contributes a land amounting to 400,000 which has a fair value of 700,000. The land is subject to a mortgage 100,000. B agreed to settle the mortgage personally. how much are the adjusted capital contributions of A and B, respectively a. 660,000; 700,000 b. 670,00; 700,000 c. 670,000; 690,00 d. 670,000; 600,000

ASSESSMENT ACTIVITIES: PARTNERSHIP ACCOUNTING Activity 3: The partnership of Kobe and Lebron began business on January 2, 2021. Each partner confributed the following assets (the noncash assets are stated at their fair values on January 1, 2021: Cash Inventory Land Kobe P 600,000 800,000 -0- 1.000,000 Lebron P 500,000 LOUIS Equipment 1,300,000 -0- The land was subject to a P500,000 mortgage, which the partnership assumed on January 1, 2021. The equipment was subject to an installment notes payable that had an unpaid principal amount of P200,000 on January 1, 2021. The partnership also assumed this notes payable. Kobe and Lebron agreed to share partnership income and losses in the following manner: Interest on beginning capital balances Salaries Remainder Jenny 3% 120,000 Kenny 3% 120,000 60% 40% During 2021, the following events occurred: 1. Inventory was acquired at a cost P300,000. At December 31, 2021, the partnership owed P60,000 to its suppliers. 2. Principal of P50,000 was paid…

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Which of the following is an election or calculation made by the partner rather than the partnership? Calculation of a section 199A(qualified business income) deduction amount. Claiming a section 179 deduction related to property acquired by the partnership. Tax treatment (e.g., credit, amortization) of research and experimental costs. The partnership's accounting method (e.g.. cash, accrual).

A and B are equal partners. Assume that the partnership net income in the current year is 340800. The partnership agreement states as follows: Partners are entitle to Salary of: A - $45,000; B - $38,000 Interest on Capital: A - $7,000; B - $6,000 Interest charged on drawings: A - $2,500; B - $1,800 The Partners share profits and losses as follows: A: 60%; B: 40% Complete the multiple spaces below to calculate the Taxable Income of each partner. Just state the figure without any commas, full stops or dollar signs. If the figure is a negative, show it in brackets, eg (3000)

Partner Bob’s basis in his partnership interest is $50,000. What gain or loss is recognized, and what are Bob’s basis in the property received and his basis in his partnership interest, if the partnership makes the following independent proportionate nonliquidating distributions? Partnership distributes $8,000 of inventory value with a $5,000 basis. Partnership distributes two parcels of land, each with a value of $30,000. The partnership’s basis in parcel A is $40,000 and in parcel B is $20,000.

Partner capital accounts upon formation of partnership-Goodwill Method Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $30,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. What will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Goodwill Method? Select one: a. Partner A   Partner B $90,000   $90,000 b. Partner A   Partner B $37,500   $37,500 c. Partner A   Partner B $45,000   $45,000 d. Partner A   Partner B $30,000   $45,000

Each partner's initial noncash investment in the partnership should be recorded at the a. carrying amount of the assets at the date of their transfer into the partnership. fair value of the assets at the date of their transfer into the business. c. original cost of the assets at the time they were purchased by the contributing partner. d. fair value of the assets at the date the partnership begins operations.