James and John Go into Business Together as Partners

question 57

True/False

James and John go into business together as partners.They each decide to make contributions to the business of the partnership.James has two vans worth $15 000,which he gives to the partnership.John owns an old farmhouse worth $60 000 that they decide can be used as a warehouse,and John gives it to the partnership.Five years later,there is a falling out and they decide to end the partnership.By this time the warehouse is worth $80 000 and the vans are worth $12 000.John will be entitled to $80 000 and James will be entitled to the depreciated value of the vans,namely $12 000.