A. Analyze the given independent cases below. (I need your opinion about this case thank you!) Case 1: Mr Pierre acquired his business for P10,000,000. The fair market value of the business is P11,000,000. Will it be more useful if accounting records were adjusted corresponding to the fair market value amount of the business? Justify your answer. Case 2: The owner of the business is questioning why the gasoline and oil consumed by the family in going to Cagayan by his family which was paid from cash of the business charged to his personal drawing. He is claiming that since he is the owner of the business, he has the discretion to the use of business cash. How would you explain your accounting for such payment? - B. (Help me understand this one) Read carefully the following situation and determine the Assets, Liabilities, and Equality of this situation. The business was put up from a cash of P200,000, the initial capital of the owner. Then, P40,000 of the cash was used to purchase an equipment to be used in busi- ness. The purchase of equipment resulted in a liability of P20,000. How much are the total assets of the business? Solutions