Austin contributed land, inventory, and $36,000 cash to a p…
Austin contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The journal entry to record Austin’s contribution to the partnership will include…
Read DetailsMartin Farley and Ashley Clark formed a partnership with an…
Martin Farley and Ashley Clark formed a partnership with an operating agreement that provided a salary allowance of $40,000 and $30,000 to each partner, respectively. In addition, the operating agreement specified an income sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Net Income for the year was $148,000 Determine Farley’s distribution of net income for the year.
Read DetailsEquipment acquired at the beginning of the year at a cost of…
Equipment acquired at the beginning of the year at a cost of $340,000 has an estimated residual value of $45,000 and an estimated useful life of 10 years. Determine the amount of depreciation expense recognized each year under the straight-line method of depreciation.
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