Discuss How Each of the Following Would Be Recorded in the Partner's

question 147

Essay

Discuss how each of the following would be recorded in the partner's capital account and why:
a.Trevor invests into the partnership land that he paid $40,000 for 3 years ago.Today,the fair market value of the land is $65,000.
b.Marcela invests into the partnership a building that she paid $24,000 for 2 years ago.The building has a $10,000 mortgage and its fair market value is $18,000.The partnership assumes the mortgage.
c.Courtney invests into the partnership equipment she paid $12,000 for earlier in the year by signing a note payable that the partnership is not assuming.The equipment has a fair market value of $15,000.

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Definitions:

Intangible Resources

non-physical assets such as brand reputation, trademarks, intellectual property, and skills that a company uses to gain a competitive advantage.

Strategic Organizational Behavior

The study and application of knowledge about how people, individuals, and groups act within organizations to improve effectiveness and achieve goals.

Competitive Edge

The advantage that sets an organization or individual apart from its competitors, enhancing its market position.

Relate

To establish a connection or find similarities between things, or to empathize and understand someone's experiences or emotions.