partnership

Question 1

partnership

Answer 1

is not a taxable entity

Question 2

Partnership formation

Answer 2

Assets are valued at fair value

Liablities assumed are recorded at present value

Question 3

Three diff methods to admit partner

Answer 3

Bonus Method
Goodwill method
Exact method when there is no good will or bonus

Question 4

What happens when partners invest non monetary assets in the business

Answer 4

When partners invest nonmonetary assets in the business, those assets should be recorded at their current fair value at the date they are contributed.