When a partner invests assets other than cash into a partnership,those assets should be listed on the balance sheet at
A)their original cost
B)their carrying (book)value
C)their fair market value
D)the value the investing partner assigns to them

Question

Quizplus · Accepted Answer

When assets other than cash are contributed to a partnership, they should be listed on the balance sheet at their fair market value. This reflects the true value of the assets and provides an accurate picture of the partnership's financial position. Using their original cost or carrying value may not reflect their current worth, while letting the investing partner assign the value could lead to subjective or biased assessments. Therefore, fair market value is the most appropriate choice.

When a Partner Invests Assets Other Than Cash into a Partnership,those