Algood and gaw began a partnership on january 2 of the


Algood and Gaw began a partnership on January 2 of the current year. Algood invested cash of $150,000 as well as inventory costing $30,000, but with a current appraised value of $50,000. Gaw contributed land with a $60,000 book value and a $90,000 fair market value. The partnership also accepted responsibility for a $70,000 note payable owed in connection with the land. The partners agreed to begin operations with equal capital balances.

Assuming that the bonus method was used by this partnership, what was Algood's initial capital balance?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Algood and gaw began a partnership on january 2 of the
Reference No:- TGS01148739

Expected delivery within 24 Hours