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Lawson and Redwood formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Lawson contributed her sole proprietorship's assets
Lawson and Redwood formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Lawson contributed her sole proprietorship's assets and liabilities (credit balances in parentheses) as follows:
Book Value Current Market Value Accounts Receivable: 12,600. 11,000
Merchandise Inventory: 42,000. 32,000
Prepaid Expenses: 3,600 3,300
Store Equipment, Net: 43,000. 25,000
Accounts Payable: (21,000) (21,000)
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