Assets contributed to a partnership should be initially recorded at:
A) fair value.
B) carrying amount.
C) replacement value.
D) written down value.

Question

Quizplus · Accepted Answer

Assets contributed to a partnership should be initially recorded at fair value, which is the amount at which the asset could be exchanged between knowledgeable and willing parties in an arm's length transaction. This approach ensures that the assets are recorded at a consistent and reliable value, and it also provides a starting point for subsequent valuations and reporting.

Assets Contributed to a Partnership Should Be Initially Recorded At