A Partner Contributes Plant and Equipment When a Partnership Is

Multiple Choice

A partner contributes plant and equipment when a partnership is established. The amount recognised by the partnership for this contributed asset is equal to:

A) the carrying amount of the asset at the date of contribution.
B) the fair value of the asset at the date of contribution.
C) the amount paid by the contributing partner when originally acquiring the asset.
D) the same proportion of contributions by other partners.