Non-cash Assets Land Building Machinery and Equipment Cost P 100,000 1,000,000 500,000 Comments Cost is equal to the fair value Fair value of which is 80% of its cost Fair value of which is 70% of its cost There is a P200,000 mortgage on the building which the partners agree not to assume in the partnership. A contributes cash on P650,000. Compute the total assets of the partnership upon formation.
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- A and B enter into a partnership agreement contributing their respective business' assets at fair market values: Cash Accounts Receivable Machinery and Equipment Land A 60,000 200,000 120,000 B 200,000 430,000 Additional information: An Allowance for Doubtful Accounts of 2% of accounts receivable is to be set up; . The land is subject to a mortgage loan of P24,000 which the partnership will assume. The partnership agreement states that A and B share profits and losses, 40% and 60%, respectively, and partners agreed to bring their capital balances in proportion to the profit and loss ratio. Compute the amount of bonus that should be given to one partner.A, B and C decided to form ABC Partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. B will contribute a land and building with book value of P2,400,000 and fair market value of P3,000,000. The land and building is subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. They agreed that C will contribute sufficient cash to the partnership. A day after the partnership formation, the equipment was sold for P 600,000. What is the amount of cash contributed by C?A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A-cash, P22,000 and Furniture and Equipment P12,000: B-cash, P32,000 Inventory, P17,000 Building, P42.000, The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?
- A, B and C decided to form ABC Partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. B will contribute a land and building with book value of P2,400,000 and fair market value of P3,000,000. The land and building is subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. They agreed that C will contribute sufficient cash to the partnership. A day after the partnership formation, the equipment was sold for P 600,000. (Show your solution) What is the total agreed capitalization of the ABC Partnership?a. P3,000,000b. P4,000,000c. P5,000,000d. P6,000,000 What is the capital credit of A in the ABC Partnership after the formation?a. P200,000b. P400,000c. P600,000d. P800,000 What is the capital credit of B in the ABC Partnership after the formation?a. P1,800,000b.…A and B formed a 60:40 capital interest in AB Partnership with the following contribution: A B Land P1,000,000 - Building - P 800,000 Mortgage - 50,000 They agreed that the land will be valued at P1,500,000 and the mortgage will be assumed by the partnership. Part of the agreement also provided that the building already reflects its fair value. Assuming A is the base, how much should B contribute or (withdraw) to be in accordance with their capital interest? 133,333250,000200,000(P83,333) Assuming B is the base, how much should A contribute or (withdraw) to be in accordance with their capital interest?(P300,000)(P375,000)200,000125,000A enters a partnership by contributing the following: . Cash P2,000,000. • Accounts Receivable P400,000; • Land costs P240,000, P400,000 fair market value with an agreed value of P350,000; and Accounts Payable P160,000. The partnership assumed that 10% of Accounts Receivable is deemed uncollectible. Compute the adjusted capital account of A after the formation.
- Numbers 1-4 (Investment Method Vs. Bonus Method) Thor and Loki formed a partnership and contributed the following assets with their respective fair values: Loki Cash Land Building Equipment B. 420,000 C. 300,000 D. 432,000 Thor P 180,000 Per partnership agreement, the equipment is to be valued at P120,000. Loki's land and building is subject to a P100,000 real estate mortgage which is assumed by the partnership. The mortgage has P10,000 interest accrued which is to be assumed by Loki. The fair value of the land and building is agreed to be equal to their respective book values. 100,000 1. How much is the final capital credit to Thor? A. 288,000 B. 420,000 C. 300,000 D. 432,000 2. How much is the final capital credit to Loki? A. 288,000 P220,000 300,000 Assuming instead that Thor and Lokd decided to divide capital in the ratio of 40:60, respectively and uses the bonus method, answer the following: B. 420,000 C. 300,000 D. 432,000 3. How much is the final capital credit to Thor? A.…A and B entered into a partnership agreement in which A is to have 55% interest in the partnership and 35% in the profits and losses, while B will have 45% interest in the partnership and 65% in the profits and losses. A contributed the following: Cost Fair value Building P235,000 P255,000 Equipment 168,000 156,000 Land 500,000 525,000 The building and the equipment have a mortgage of P50,000 and P35,000 respectively. B is to contribute P150,000 cash and an equipment. The partners agreed that only the building mortgage will be assumed by the partnership. How much is the total asset of the partnership upon formation?A and B entered into a partnership agreement in which A is to have 55% interest in the partnership and 35% in the profits and losses, while B will have 45% interest in the partnership and 65% in the profits and losses. A contributed the following: Cost Fair value Building P235,000 P255,000 Equipment 168,000 156,000 Land 500,000 525,000 The building and the equipment have a mortgage of P50,000 and P35,000 respectively. B is to contribute P150,000 cash and an equipment. The partners agreed that only the building mortgage will be assumed by the partnership. How much is the fair market value of the equipment which B contributed?
- A, B, C and E are partners. They contributed to the capital as follows: A-P50,000; B-P100,000; C-P150,000; and E as the industrial partner, his services. The partnership obligation to outsiders exceeds the total net assets by P200,000. Who and by how much will the partners be liable for the payment of the P200,000? a. A-zero; B- zero; C-zero; E-zero b. A- P33,333; B-P66,666;C-P100,000;E-zero c. A-P45,000; B-P45,000; C-P55,000; E- P55,000 d. A-P50,000; B-P50,000; C-P50,500; E-P50,000X and Y are partners with capital account balances of P 600,000 each and share profits and loss equally Z is allowed to purchase of the interest of X by paying P 200,000. The partners further agreed to record asset revaluation before the admission of Z. By how much would the new partnership net assets change as the result of asset revaluation? Place a parenthesis if your answer is decreaseOn March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000