James Cavanaugh,proprietor has agreed to take on a partner.His net assets are market valued at $105,000 with book assets having a net value of $95,000.In the newly created partnership,Cavanaugh's capital will reflect the $95,000 book value of existing assets contributed to the new organization.

Question

Quizplus · Accepted Answer

The Answer of James Cavanaugh,proprietor has agreed to take on a partner.His net assets are market valued at $105,000 with book assets having a net value of $95,000.In the newly created partnership,Cavanaugh's capital will reflect the $95,000 book value of existing assets contributed to the new organization.

James Cavanaugh,proprietor Has Agreed to Take on a Partner