Scribd Logo
Upload

Welcome to Scribd!

  • Partnership Formation

    Uploaded by

    Sky Lee
    6 views1 page
    This document outlines how to value assets and liabilities when forming a partnership. It states that cash is valued at face value, while land, depreciable assets, and other non-current assets are valued either at an agreed value, fair value, appraised value, or carrying/book value. It also notes that liabilities are assumed if not specified, inventory is valued at the lower of cost or net realizable value, and capital can be valued using either the bonus method or investment/withdrawal method.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines how to value assets and liabilities when forming a partnership. It states that cash is valued at face value, while land, depreciable assets, and other non-current assets are valued either at an agreed value, fair value, appraised value, or carrying/book value. It also notes that liabilities are assumed if not specified, inventory is valued at the lower of cost or net realizable value, and capital can be valued using either the bonus method or investment/withdrawal method.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views1 page

    Partnership Formation

    Uploaded by

    Sky Lee
    This document outlines how to value assets and liabilities when forming a partnership. It states that cash is valued at face value, while land, depreciable assets, and other non-current assets are valued either at an agreed value, fair value, appraised value, or carrying/book value. It also notes that liabilities are assumed if not specified, inventory is valued at the lower of cost or net realizable value, and capital can be valued using either the bonus method or investment/withdrawal method.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    PARTNERSHIP FORMATION

    VALUATION:
    1. Cash – Face Value
    2. Land, Depreciable Asset, & NCA
    a. Agreed Value
    b. Fair Value
    c. Appraised Value
    d. Carrying Value/Book Value
    3. Liabilities – are considered assumed if the problem is silent
    4. Inventory – Lower of Cost and Net Realizable Value (LCNRV)
    5. Capital
    5.1. Bonus Method
    5.2. Investment/Withdrawal Method

    You might also like