A partner invests into a partnership a building with an original cost of $360000 and accumulated depreciation of $160000. This building has a $280000 fair value. As a result of the investment the partner's capital account will be credited for

Question

Quizplus · Accepted Answer

When a partner invests a non-cash asset into a partnership, the partner's capital account is credited with the fair value of the asset at the time of the investment, which is $280,000 in this case.

A Partner Invests into a Partnership a Building with an Original