1) Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $5,600 and a fair market value of $15,600. Kelsey will invest a building with a book value of $45,800 and a fair market value of $60,200. What amount will be recorded to the building account?

a.$5,600

b.$45,800

c.$15,600

d.$60,200

2) Which of the following is a characteristic of a general partnership?

a.unlimited life

b.limitation on legal liability

c.simple to form

d.not taxable