When Two Proprietors Decide to Combine Their Businesses and Form

Multiple Choice

When two proprietors decide to combine their businesses and form a partnership, GAAP usually requires that noncash assets be taken over at their:

A) residual value on the date of the formation of the partnership.
B) book value on the date of the partnership.
C) fair market value on the date of the partnership.
D) historical cost on the date of the partnership.