2. Liam sold his partnership interest to Jason even though his other partners were unaware that Liam intended to do so.

1. Does Jason have the right to be a partner?

2. Does Jason have the right to take over Liams position as manager of the business?

3. Will Jason be entitled to share in the partnership profits and, if so, how much?

8.2 Partnership formation L05 Tammie Pike and Gail Smith agree to combine their businesses and form a partnership. The fair value and the carrying amount of the assets contributed by each partner, and the liabilities assumed by the partnership are shown below. Cash at bank Accounts receivable Inventory Equipment Accumulated depreciation - equipment Accounts payable Tammie Pike Carrying Fair amount value $ 6200 $ 6200 12 800 12 800 22 000 21 500 72 000 48 000 (18 600) 13 400 13 400 Gail Smith Carrying Fair amount value $ 5800 $ 5800 11 400 11 400 18 500 18 300 75 000 32 000 (26 500) 12 800 12 800 Required a. Prepare separate general journal entries to record the initial investment of each partner, assuming assets are recorded by the business to reflect their purchase price, and the arrangement is GST-free