Bill stewart contributes land valued at $10,000 and a building valued at $70,000 to form a partnership. the partnership also will pay the $50,000 mortgage payable on the building that bill contributes. bill stewart, capital should be credited for what amount to record his investment in the partnership?

Question

Business

Micaela Huang

14 February, 05:57

Bill stewart contributes land valued at $10,000 and a building valued at $70,000 to form a partnership. the partnership also will pay the $50,000 mortgage payable on the building that bill contributes. bill stewart, capital should be credited for what amount to record his investment in the partnership?

+2

Answers (1)

Know the Answer?

Hays · Answer 1

In the given case Bill Stewart has contributed land valued at $10,000 and a building valued at $70,000 to form a partnership. It means the value of assets contributed by Bill Stewart is 10,000+70,000 = $80,000.

In addition to the above assets, the partnership also will pay the $50,000 mortgage payable on the building that bill contributes. It means Bill has transferred a liability to the firm.

So, Bill Stewart's capital should be credited with 80,000-50,000 = $30,000