Question
URGENT A and B (AB partnership) decide to form a partnership. A already has a business in operation and he transfers the following business items
URGENT
A and B (AB partnership) decide to form a partnership. A already has a business in operation and he transfers the following business items into the partnership.
Cash | $6,000 |
Inventory | 14,000 |
Equipment | 40,000 |
Accumulated Depreciation | (10,000) |
Liabilities | 20,000 |
Also, the following information is available about A's business assets. The inventory has a current market value of 18,000; the equipment has a current value of 38,000; and there are 2,000 of unrecorded liabilities that the partnership assumes.
Mr B contributes 20,000 cash to the partnership.
. What is the value of the net assets brought by A that will be recorded in the partnership business?
$32,000
$28,000
$40,000
$30,000
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