When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their

Question

Quizplus · Accepted Answer

Assets should be recorded at their fair market value at the time of contribution to the partnership, as this provides the most accurate reflection of the true value of the assets within the partnership. Book values and original costs may not accurately reflect the current value of the assets, and assessed values for property tax purposes may not reflect fair market value.

When a Partnership Is Formed, Assets Contributed by the Partners