James and Sam form a business to be operated as a partnership. James invests $100,000...
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Accounting
James and Sam form a business to be operated as a partnership. James invests $100,000 in cash and Sam contributes the following assets: Book Value Fair Value Land $10,000 $12,000 Building $50,000 $56,000 Inventory $20,000 $23,000 Totals $80,000 $91,000 The building is encumbered by a $27,000 mortgage liability that the business agreed to assume. Record the journal entry for the formation of the partnership.
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