The post-closing trial balances of two proprietorships on January 1, 2017, are presented below.
Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets.
All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Sorensen will invest an additional $6,100 in cash, and Lucas will invest an additional $23,200 in cash.
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