200. On December 1, 2014, MG and AN are combining their separate businesses to form a partnership. Cashand noncash assets are to be contributed. The noncash assets to be contributed and the liabilities to beassumed are as follows:Accounts ReceivableInventoryPPEAccounts PayableMGBook value250,000400,0001,000,000150,000A. 1,344,000B. 1,244,000C. 3,120,000D. 2,180,000Fair value262,500450,000912,500150,000ANBook value200,000200,000862,500112,500Fair value195,000207,500822,500112,500MG and AN are to invest equal amount of cash such that the contribution of MG would be 10%more than the investment of AN.What is the amount of cash presented on the partnership's statement of Financial Position onDecember 1, 2014?

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What is the amount of cash presented on the partnership's statement of Financial Position on December 1, 2014?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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