Robert Johnson contributed equipment inventory and 42000 cas

Robert Johnson contributed equipment, inventory, and $42,000 cash to the partnership. The equipment had a book value of $25,000 and market value of $28,000. The inventory has a book value of $50,000, but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note payable owed by Robert that was originally used to purchase the equipment.

Solution

HERE we are supposed to find the amount recorded in Roberts account

Cash contribution by Robert = $42,000
Market value of the Inventory amount to = $ 15,000
Market value of the Equipment= $ 28,000
Notes payable by Robert for the purchase of the equipment = $ 12,000

hence the amount recorded in Roberts account would be = 42000+15000+28000-12000 = $ 73,000