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  • Solution:: J's Capital Cash Machinery and Equipment Building Mortgage J's Capital Balance 2,900,000

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    Ryoma Echizen
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    K and J formed a partnership on March 1, 2018, with K contributing $300,000 cash, $250,000 machinery and equipment, and $100,000 furniture and fixtures. J contributed $700,000 cash, $750,000 machinery and equipment, and a $2,250,000 building that was subject to an $800,000 mortgage assumed by the partnership. According to the agreement, J's capital account balance on March 1, 2018 was $2,900,000.

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    Partnership

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    K and J formed a partnership on March 1, 2018, with K contributing $300,000 cash, $250,000 machinery and equipment, and $100,000 furniture and fixtures. J contributed $700,000 cash, $750,000 machinery and equipment, and a $2,250,000 building that was subject to an $800,000 mortgage assumed by the partnership. According to the agreement, J's capital account balance on March 1, 2018 was $2,900,000.

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    5 views1 page

    Solution:: J's Capital Cash Machinery and Equipment Building Mortgage J's Capital Balance 2,900,000

    Uploaded by

    Ryoma Echizen
    K and J formed a partnership on March 1, 2018, with K contributing $300,000 cash, $250,000 machinery and equipment, and $100,000 furniture and fixtures. J contributed $700,000 cash, $750,000 machinery and equipment, and a $2,250,000 building that was subject to an $800,000 mortgage assumed by the partnership. According to the agreement, J's capital account balance on March 1, 2018 was $2,900,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    On March 1, 2018, K and J formed a partnership with each contributing the following assets:

    K J

    Cash 300,000 700,000

    Machinery & Equipment 250,000 750,000

    Building - 2,250,000

    Furnitures & Fixtures 100,000 -

    The building is subject to a mortgage loan of P800,000, which is to be assumed by the


    partnership. Agreement provides that K and J share profits and losses 30% and 70%,
    respectively. On march 1, 2018, the balance in J’s capital account should be?

    ANSWER: 2,900,000
    Solution:
    J’s Capital
    Cash 700,000
    Machinery and equipment 750,000
    Building 2,250,000
    Mortgage (800,000)
    J’s capital balance 2,900,000

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