Question

A partner invests into a partnership a building with an original cost of $180,000 and accumulated depreciation of $80,000. This building has a $140,000 fair value. As a result of the investment, the partner's capital account will be credited for Group of answer choices $140,000. $100,000. $180,000. $240,000.

Answer 1

$140,000

Step-by-step explanation:

For accounting and legal purposes, the contribution of a partner to a partnership business is recorded using the fair value of the asset contributed.

It therefore means that;

Capital account = Fair value of the asset (I.e partner's investment in a partnership business is based on fair value of such investment)

With regards to the foregoing, the partner's capital account will be credited with $140,000