How to journal entry this event

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Reference no: EM13140088

The property contributed by Tara was known as "Dragon Acres". This property was SOLD on July 4th of the current year for $550,000 ($370,000 of cash AND the buyer assumed the $180,000 loan). The property increased in value dramatically during the year, and both partners agree the increase in value occurred during the current year. The $370,000 cash is shown in a separate account, but no entry has been made to record the sale, so you'll need to make the journal entry necessary to record the sale AND decide how to allocate the gain between the two partners.

Tara contributed a parcel of land (acquired on 1/1/1995 as investment property) and its related mortgage. The land originally cost $208,000 and had a fair market value of $350,000 as of the date it was contributed to the partnership. There was a $180,000 balance on the qualified nonrecourse mortgage assumed by the partnership. The land is known as "Dragon Acres". The capital contribution of the land and its related mortgage was made on the date the partnership was formed. The land was used by the Partnership as a location to train the horses.

How to journal entry this event? Partnership ratio Tara 60%, Kevin 40%

Reference no: EM13140088

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How to journal entry this event : The capital contribution of the land and its related mortgage was made on the date the partnership was formed. The land was used by the Partnership as a location to train the horses. How to journal entry this event? Partnership ratio Tara 60%, Kevi..

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