A and B agreed to form a partnership. The contributions of the partners are as follows:...
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A and B agreed to form a partnership. The contributions of the partners are as follows: B Cash Inventory Land Equipment Additional information: A 400,000 15,000 25,000 Half of the inventory is unpaid. The partnership agreed to assume the related accounts payable. The land has a fair value of P350,000 and is subject to a mortgage of P50,000. However, B agreed to settle the mortgage personally. Required: 250,000 a. Determine the correct valuations of the partners' contributions in the partnership books of accounts. b. Provide the journal entry. A and B agreed to form a partnership. The contributions of the partners are as follows: B Cash Inventory Land Equipment Additional information: A 400,000 15,000 25,000 Half of the inventory is unpaid. The partnership agreed to assume the related accounts payable. The land has a fair value of P350,000 and is subject to a mortgage of P50,000. However, B agreed to settle the mortgage personally. Required: 250,000 a. Determine the correct valuations of the partners' contributions in the partnership books of accounts. b. Provide the journal entry.
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Related Book For
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
Posted Date:
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