Rosfe Badoy formed a partnership with Enrico Yee on a business dealing with motorcycle parts in Davao City. Their capital balances as of this date, follows: R. E. Yee Total Badoy 100,000.00 200,000.00 300,000.00 Romanor Gatmaitan, a prospective business associate offers to buy 1/4 of the partnership interest for P85,000. The old profit and loss ratio of the partners is 45% -55% after which, they will again have to provide a new basis for profit distribution. Answer the following questions; 1. How much is the book value of partnership interest acquired by Gatmaitan? Answer: 2. How much is the gain or loss on the sale transactions? Answer: 3. What is the journal entry to record the admission of Gatmaitan? Answer:
Rosfe Badoy formed a partnership with Enrico Yee on a business dealing with motorcycle parts in Davao City. Their capital balances as of this date, follows: R. E. Yee Total Badoy 100,000.00 200,000.00 300,000.00 Romanor Gatmaitan, a prospective business associate offers to buy 1/4 of the partnership interest for P85,000. The old profit and loss ratio of the partners is 45% -55% after which, they will again have to provide a new basis for profit distribution. Answer the following questions; 1. How much is the book value of partnership interest acquired by Gatmaitan? Answer: 2. How much is the gain or loss on the sale transactions? Answer: 3. What is the journal entry to record the admission of Gatmaitan? Answer:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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