When two proprietors decide to combine their businesses and form a partnership, GAAP usually requires that noncash assets be taken over at their _______ on the date of the partnership.A. residual value B. book value C. fair market value D. historical cost
THE ANSWER IS C Partnership acts varry in many states but the treatment provided by GAAP on non cash items on the time of partnership is a monetary value meaning the fair market price.
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