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Question - Penner and Torres decide to join their proprietorships into a partnership called Pentor Company. Penner said that he will put up 14,500 cash to the newly-formed company. Below is Penner's financial position:
Accounts Receivable: $16,000
Less: Allowance for Doubtful accounts: 1,200
Equipment: 20,000
Less: Accumulated depreciation - equipment: 7,000
The partners agree that the net realizable value of the receivables is $14,500 and that the fair value of the equipment is $11,000. Indicate the amount to be credited to Penner Capital.
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