In 2018, Sweet and Grace agreed to contribute equal amount into a new partnership for a...

 

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In 2018, Sweet and Grace agreed to contribute equal amount into a new partnership for a 60:40 interest in profit (loss) and in capital to each of them. Their respective contributions will come from old proprietorships they owned and will be dissolved. Sweet contributed the following items and amounts: Cash P 585,000 Machineries (at book value per her proprietorship records 400,000 Grace contributed the following items at their carrying amounts in the proprietorship records: Accounts receivable Inventory Furniture and Fixture Intangibles 75,000 210,000 402,000 172,000 All non-cash contributions are not properly valued. The two partners have agreed that (a) P6,000 of the accounts receivable are uncollectible; (b) the inventories are overstated by P 15,000 (c) the furniture and fixtures are understated by P9, 000; and the intangibles include patent with a carrying value of P 10, 500, which must now be derecognized due to the result of unsuccessful litigation promulgated by the court just before the partnership formation. What is the fair value of the machineries invested by Sweet into the partnership? In 2018, Sweet and Grace agreed to contribute equal amount into a new partnership for a 60:40 interest in profit (loss) and in capital to each of them. Their respective contributions will come from old proprietorships they owned and will be dissolved. Sweet contributed the following items and amounts: Cash P 585,000 Machineries (at book value per her proprietorship records 400,000 Grace contributed the following items at their carrying amounts in the proprietorship records: Accounts receivable Inventory Furniture and Fixture Intangibles 75,000 210,000 402,000 172,000 All non-cash contributions are not properly valued. The two partners have agreed that (a) P6,000 of the accounts receivable are uncollectible; (b) the inventories are overstated by P 15,000 (c) the furniture and fixtures are understated by P9, 000; and the intangibles include patent with a carrying value of P 10, 500, which must now be derecognized due to the result of unsuccessful litigation promulgated by the court just before the partnership formation. What is the fair value of the machineries invested by Sweet into the partnership?