After a partner is admitted to a partnership, the partner's proportionate share of any increase in partnership liabilities results in a decrease in the partner's adjusted basis in the partnership.1. True2. False

The amount that Fisher should report as its investment in steel on its December 31, 2018 balance sheet should be $2,300,940.

Explanation:

For calculating the investment of Fisher in 2018 can be calculated by adding the equity income which they will get on the net profit made by steel according to their holding which is given as 34% and subtracting the other comprehensive income loss  and dividend declared both according to their holding of 345 from the purchase price of the outstanding stocks.

INVESTMENT AMOUNT =

PURCHASE PRICE                 =  $ 2,440,000

EQUITY INCOME (+)              =  $ 676,000 X 34%

                                                = $ 229,840

LOSS ON OTHER                   = $ 1065,000 X 34%

COMPREHENSIVE INCOME (-)

                                                = ($ 362,100)

DIVIDENDS DECLARED (-)        = $ 20,000 X 34%

                                                = ($ 6800)

INVESTMENT AT END OF YEAR  =

         $2440,000 + @229,840 - $362,100 - $6800

          = $2,300,940