Case 12.1

Adam and Alice form the AA Partnership. The following table details information about their investments in the partnership.

Accumulated Note

Partner Asset Cost Depreciation Value on Asset

Adam Cash $45,000 $45,000

Adam Land $55,000 $105,000

Adam Building $140,000 $40,000 $190,000 $105,000

Alice Cash $20,500 $20,500

Alice Equipment $60,000 $20,000 $50,000 $15,000

Alice Automobile $25,000 $10,000 $20,000

Record Adams investment

Record Alies investment

What will be the total assets on the balance sheet of the partnership immediately after the investments by Adam and Alice?

What will be the total liabilities on the balance sheet of the partnership immediately after the investments by Adam and Alice?