The partnership of Carding and Moly was formed on February 28, 20x1. At that date, the...
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The partnership of Carding and Moly was formed on February 28, 20x1. At that date, the following assets were contributed: Carding P35,000 Cash Moly P 15,000 Merchandise 45,000 Building 100,000 Furniture and fixtures 25,000 The building is subject to a mortgage loan of P30,000 that is to be assumed by the partnership. The partnership agreement provides that Carding and Moly share profits or losses 40:60, respectively. The partnership agreement states that the interest and P/L ratio are the same and no recognition should be given to any intangible assets contributed. What must be (1) the capital credit to Carding and (2) the amount of goodwill recognized upon formation of partnership? The partnership of Carding and Moly was formed on February 28, 20x1. At that date, the following assets were contributed: Carding P35,000 Cash Moly P 15,000 Merchandise 45,000 Building 100,000 Furniture and fixtures 25,000 The building is subject to a mortgage loan of P30,000 that is to be assumed by the partnership. The partnership agreement provides that Carding and Moly share profits or losses 40:60, respectively. The partnership agreement states that the interest and P/L ratio are the same and no recognition should be given to any intangible assets contributed. What must be (1) the capital credit to Carding and (2) the amount of goodwill recognized upon formation of partnership?
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South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337702966
22nd Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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