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Thompson and Jerry agreed on 1 January 2018 to form a partnership by contributing cash, assets and liabilities of their respective businesses. At that date

Thompson and Jerry agreed on 1 January 2018 to form a partnership by contributing cash, assets and liabilities of their respective businesses. At that date the fair values of their assets and liabilities were as set out below: Thompson Jerry Cash at bank Accounts receivable Inventory Plant and equipment Accounts payable $90 000 12 000 - 90 000 12 500 $100 000 - 40 000 70 000 - The partnership made a profit of $144,000 at the end

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