Safarl FleEdiewlstoryi Bookmarks Window Help oo e Take a Test -Alexandra Navo ht

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Safarl FleEdiewlstoryi Bookmarks Window Help oo e Take a Test -Alexandra Navo htwww.mathxl.com/Student/PlayerTest.aspxtestld- c ACC1200-SU2018 Quiz: HW2 CH12 Submit Quiz This Question: 1 pt 7 of 32 This Quiz: 32 pts possibl On January 1, 2018, Mables contributes land in a partnership with Evans. Mables purchased the land in 2013 for $175,000. A real estate appraiser now values the land at $650,000. Mables wants $650,000 capital in the new partnership, but Evans objects. Evans believes that Mables's capital contribution should be measured by the book value of his land. Evans and Mables seek your advice. Read the requirements Requirement 1. Which value of the land is appropriate for measuring Mables's capital -book value or current market value? Mables's capital contribution of land should be valued at Requirement 2. Give the partnership's journal entry to record Mables's contribution in the business Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Debit Credit Accounts and Explanation Date 2018 Jan. 1

Explanation / Answer

Solution: Requirement 1

Mables's capital contribution of land should be valued at Current market value.

Requirement 2

Date Accounts Debit Credit Land. Dr. $650,000 To Mables's Capital a/c $650,000

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