partnership Flashcards
1
Q
partnership
A
is not a taxable entity
2
Q
Partnership formation
A
Assets are valued at fair value
Liablities assumed are recorded at present value
3
Q
Three diff methods to admit partner
A
Bonus Method
Goodwill method
Exact method when there is no good will or bonus
4
Q
What happens when partners invest non monetary assets in the business
A
When partners invest nonmonetary assets in the business, those assets should be recorded at their current fair value at the date they are contributed.
