Jay & Kay partnership's balance sheet at December 31,20X1,reported the following:

On January 2,20X2,Jay and Kay dissolved their partnership and transferred all assets and liabilities to a newly-formed corporation.At the date of incorporation,the fair value of the net assets was $12,000 more than the carrying amount on the partnership's books,of which $7,000 was assigned to tangible assets and $5,000 was assigned to goodwill.Jay and Kay were each issued 5,000 shares of the corporation's $1 par value common stock.Immediately following incorporation,additional paid-in capital in excess of par should be credited for

Question

Jay & Kay partnership's balance sheet at December 31,20X1,reported the following:

On January 2,20X2,Jay and Kay dissolved their partnership and transferred all assets and liabilities to a newly-formed corporation.At the date of incorporation,the fair value of the net assets was $12,000 more than the carrying amount on the partnership's books,of which $7,000 was assigned to tangible assets and $5,000 was assigned to goodwill.Jay and Kay were each issued 5,000 shares of the corporation's $1 par value common stock.Immediately following incorporation,additional paid-in capital in excess of par should be credited for

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The Answer of Jay & Kay partnership's balance sheet at December 31,20X1,reported the following:

On January 2,20X2,Jay and Kay dissolved their partnership and transferred all assets and liabilities to a newly-formed corporation.At the date of incorporation,the fair value of the net assets was $12,000 more than the carrying amount on the partnership's books,of which $7,000 was assigned to tangible assets and $5,000 was assigned to goodwill.Jay and Kay were each issued 5,000 shares of the corporation's $1 par value common stock.Immediately following incorporation,additional paid-in capital in excess of par should be credited for

Jay & Kay Partnership's Balance Sheet at December 31,20X1,reported the Following