Problem #2 Chole Shorter has been operating an apartment-locator service as a sole proprietorship. She...
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Accounting
Problem #2 Chole Shorter has been operating an apartment-locator service as a sole proprietorship. She and Tiselle Bascom have decided to form a partnership. Shorter's contribution consists of Cash $4,000; Accounts Receivable, $13,000; Furniture, $15,000; Building(net), $54,000; and Notes Payable, $14,000 To determine Shorter's equity in the partnership equity in the partnership, she and Tiselle hired independent appraiser, Richard Powell. Richard values all the assets and liabilities at their book value except the building, which has a current market value of $95,000. Also, there are additional Accounts Payable of $9,000 that Chloe will contribute. Tiselle will contribute cash equal to Chole's equity in the partnership. (20 points)
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