IIA
IIA-CIA-PART3 · Question #111
An internal auditor was asked to review an equal equity partnership, in one sampled transaction. Partner A transferred equipment into the partnership with a Self-declared value of 510 ,000, and…
The correct answer is C. No action is needed, as the capital account of each partner was increased by the correct amount. You've hit your session limit · resets 10:20pm (America/New_York)
Question
An internal auditor was asked to review an equal equity partnership, in one sampled transaction. Partner A transferred equipment into the partnership with a Self-declared value of 510 ,000, and Partner B contributed equipment with a self-declared value of 515,000. The capital accounts reach partner were subsequently credited with $12,500. Which of the following statements Is true regarding this transection?
Options
- AThe capital accounts of the partners should be increased by she original cost of the contributed
- BThe capital accounts should be increased using a weighted average based by the current
- CNo action is needed, as the capital account of each partner was increased by the correct amount,
- DThe capital accounts of the partners should be increased by She fair market value of their
How the community answered
(31 responses)- A16% (5)
- B6% (2)
- C74% (23)
- D3% (1)
Explanation
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