In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decide to admit C to the partnership. A and B agree that some of the inventory is obsolete. The inventory account is decreased before C is admitted. C invests P50,000 for a 60% interest in capital.

What is the amount of inventory written down?

Answer rating: 100% (QA)

SOLUTION To determine the amount of inventory written down we need to know the total value of the inventory and the extent of the writedown agreed upo... View the full answer