When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value.

Name: When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value.
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

Noncash assets contributed by a partner are recorded at their fair market value, not the partner's book value. This is because book value may not accurately reflect the current value of the asset.

When a Partner Invests Noncash Assets in a Partnership, the Assets