If a partner invests noncash assets in a partnership they should be recorded by the partnership at their fair value.

Question

Quizplus · Accepted Answer

This is true according to generally accepted accounting principles (GAAP). Noncash assets contributed by a partner should be recorded at their fair value in the partnership's books to reflect their true market value. This helps to maintain accurate and transparent accounting records and ensures that each partner's capital account reflects their actual investment in the business.

If a Partner Invests Noncash Assets in a Partnership They