@amor
Answer (C) is correct.
If $60,000 (the fair value of Cor’s original contribution) is 50% of the partnership capital, the total initial capital is $120,000, and goodwill of $40,000 should be recognized ($120,000 – $60,000 – $20,000 cash contributed by Eng). Thus, Eng’s initial capital is $60,000.
@WANNABE_CPA
Answer is A….see explanation below
Answer (A) is correct.
Net position has three components. Net investment in capital assets includes unrestricted and restricted capital assets, net of (1) accumulated depreciation and (2) related liabilities and deferred inflows and outflows of resources. Restricted net position includes restricted assets minus related liabilities and deferred inflows of resources. The restrictions are imposed by external entities (creditors, grantors, or other governments) or by law (constitutional provisions or enabling legislation). Unrestricted net position is the net of (1) assets, (2) deferred inflows and outflows of resources, and (3) liabilities not included in the other components of net position. Thus, it is a residual category. Unrestricted net position includes items that may be internally committed or assigned (designated). These commitments and assignments are not reported on the face of the statements.
REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!
Mass-CPA
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