If a partner's investment in a partnership consists of equipment that has accumulated depreciation of $8000 it would not be appropriate for the partnership to record the accumulated depreciation.

Question

Quizplus · Accepted Answer

When a partner contributes equipment to a partnership, the partnership records the equipment at its fair market value at the time of contribution, not its historical cost or accumulated depreciation. Accumulated depreciation is relevant to the partner's personal or previous business accounting but not to the new partnership accounting.

If a Partner's Investment in a Partnership Consists of Equipment