Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 15, Problem 10MC
How does a newly formed
A. continues the depreciation life as if the owner had not changed
B. starts over, using the contributed value as the new cost basis
C. shortens the useful life of the asset per the partnership agreement
D. does not depreciate the contributed asset
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
How does a newly formed partnership handle the contribution of previously depreciated assets?A. continues the depreciation life as if the owner had not changedB. starts over, using the contributed value as the new cost basisC. shortens the useful life of the asset per the partnership agreementD. does not depreciate the contributed asset
newly formed partnership handles the contribution of previously depreciated assets by continuing the depreciation life as if the owner had not changed. Select one: O a. False Ob. True
Under the goodwill method,
a.
declines in asset values prior to new partner admission are recorded, but not asset appreciation.
b.
the total capital of the new partnership must approximate the fair value of the entity.
c.
a new partner’s capital balance may be less than his or her contribution.
d.
All of the above.
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
Additional Business Textbook Solutions
Find more solutions based on key concepts
What information does a SWOT analysis provide managers? What information might it miss?
Principles of Management
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
In centralized organizations, primary decisions are made by __________. A. an individual at the top of the orga...
Principles of Accounting Volume 2
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
Define cost pool, cost tracing, cost allocation, and cost-allocation base.
Cost Accounting (15th Edition)
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
Knowledge Booster
Similar questions
- How does a newly formed partnership handle the contribution of previously depreciated assets?arrow_forwardWhich of the following statement is true regarding the admission of a new partner? a. New partner can gain admission by contributing assets to an existing partner. b. Using the bonus method, unrecognized asset appreciations are recognized. c. Using the goodwill method, only write-downs of the net assets are recognized. d. The admission of a new partner requires the approval of the creditor (e.g., bank).arrow_forwardIf an existing partner withdraws from a partnership which is true a. his or her interest may be sold to the partnership or an individual partner. b. the consideration received for that partner's interest may suggest the existence of undervalued existing assets and/or goodwill. c. either the bonus or the goodwill method may be used to record the transaction if the partnership acquires the withdrawing partner's interest. d. all of the abovearrow_forward
- In determining changes to a partner's outside basis, which of the following statements is false? All revenue items increase outside basis even if not taxable and all expenditure items reduce outside basis even if not deductible Only taxable income increases outside basis and only deductible expenditures reduce outside basis A reduction of a partner's share of liabilities reduces outside basis usually a partner will reduce outside basis by the inside basis of any property distribution receivedarrow_forwardAttempt of the following:a. Revenue vs capital expenditureb. Accelerated depreciation methodc. Procedure for the formation of partnership.arrow_forwardIf the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: Undervaluation of Assets Goodwill Overvaluation of Assets All of the choicesarrow_forward
- What is the purpose of a partnership appropriation account? A to avoid disagreements between the partners B to calculate residual profits for division between partners C to calculate the profit sharing ratio D to determine the amount of partners’ salariesarrow_forwardIn accounting for a withdrawal by payment from partnership assets, which statement is FALSE? O The withdrawing partner may be paid using non-cash assets. O Net assets will decrease O Total capital will decrease. O Asset revaluations should bx recorded.arrow_forwardIf a partner contributes depreciable or amortizable property to the partnership, how is the basis of those properties recovered?arrow_forward
- If the partnership operations result to net loss, which of the following distribution schemes is correct? -Allocate the salaries and interest but not the bonus -Allocate the salaries, interest and bonus as per partnership agreement -Agreement as to salaries, interest and bonus are disregarded, distribute only the loss -Allocate the salaries only but not interest and bonus PFRS 5 defines a "disposal group" (i.e., that will be disposed through sale) to include: -non-current assets and some directly associated liabilities -current assets, non-current assets and some directly associated liabilities -non-current assets only -current and non-current assetsarrow_forwardWhen a partner invests noncash assets in a partnership, the assets should be recorded at their: a) Book value. b) Market value c) Carrying value. d) Original cost.arrow_forwardIn a partnership liquidation, a loss from sale of non cash assets is A.Allocated to the partner with the highest capital balance B.Allocated to the partnership liabilities C.Allocated to the partners based on their capital balances D.Allocated to the partners based on their profit and loss sharing ratioarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College