On January 1, Truly, Honest and Integrity are forming a partnership. Truly invests a building with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, Truly, Honest and Integrity are forming a partnership. Truly invests a building with cost of P5,000,000 and accumulated depreciation of P4,000,000. The building has a fair value of P2,000,000 and an annotated mortgage payable amounting to P500,000 to be assumed by the partnership. Honest, on the other hand, invested 10,000 shares of stocks with par value of P150/share and prevailing quoted price of P300/share. The building invested by Truly was sold for P5,500,000 on January 2. If Integrity wants to have a 20% interest in the new partnership, how much cash should she contribute? On January 1, Truly, Honest and Integrity are forming a partnership. Truly invests a building with cost of P5,000,000 and accumulated depreciation of P4,000,000. The building has a fair value of P2,000,000 and an annotated mortgage payable amounting to P500,000 to be assumed by the partnership. Honest, on the other hand, invested 10,000 shares of stocks with par value of P150/share and prevailing quoted price of P300/share. The building invested by Truly was sold for P5,500,000 on January 2. If Integrity wants to have a 20% interest in the new partnership, how much cash should she contribute?
Expert Answer:
Answer rating: 100% (QA)
To determine how much cash Integrity should contribute to have a 20 interest in the new partnership ... View the full answer
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
Posted Date:
Students also viewed these accounting questions
-
The original price is 100 Kr the sale is then at 250 units. with a price of 64 kr the sale is assumed to be 325 units. what is the elasticity?
-
The Edison Power Company currently owns and operates a coal-fired combustion turbine plant that was installed 20 years ago. Because of degradation of the system, 65 forced outages occurred during the...
-
A private network uses a NAPT device at public IP address 143.231.15.10 The computers in the network use addresses of the form 192.168.1.x/24. Suppose that computer inside the NATed network sends a...
-
During one week, four production employees of Martinez Manufacturing Company worked the hours shown below. All these employees receive overtime pay at one and one-half times their regular hourly rate...
-
Explain why the slope of the production function falls as more workers are hired, that is, total product increases at a decreasing rate, while the slope of the total cost curve rises as more output...
-
Describe marketing tactics to accommodate changes to the distribution channel for your organization.
-
Question:: Cheryl is a bank teller. She figures out a way to steal $99.99 per day in cash without getting caught. She takes the money daily for eight months and invests it in a catering business she...
-
Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12 million. This investment will consist of $2...
-
Merchandise is purchased for $6,000 on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $200. What is the required payment if paid on September...
-
Complete the payroll register for this pay period and update the Employee Earnings Record form for each employee with the corresponding information. The Step-2 of Form W-4 is unchecked. The amount...
-
a) Define and explain what a Swap is using the bond portfolio method for the case of a financial institution that pays the variable rate (LIBOR 6 months) and receives the annual fixed rate (compo....
-
HR Competencies & Applications Setting up an Alternative Dispute Resolution Process Creating an internal process to settle employment-related disputes and conflicts can benefit both the organization...
-
The nutrition label on a bottle of cola reports that a 8.0 fl oz serving contains 34g of sugar. How many kilograms of sugar are in a 2.00L bottle of cola? Use the conversion 1 L = 33.8 fl oz.
-
You must complete on full run of the simulation (4 years/rounds). Your paper should be 7-10 pages, plus cover page and references. Your paper will focus on the decisions you made and how you adjusted...
-
1. What are cost-volume-profit analysis underlying assumptions and what would you do if assumptions are not met? 2. Do research and discuss cost behavior analysis from the company that you work for...
-
Using the historical data, construct a supply and demand graph: Please include a graph. I am having difficulty creating the graph. Period Average Fare PAX Enplanements January 2019 $350.12 58034...
-
___________ are used to purchase something or to get cash now with the promise of future payment. Question 1 options: Checking accounts Credit cards Savings accounts Debit cards
-
What recommendations would you make to Big Four firms to help them (1) avoid confrontations with governmental officials in an authoritarian society and (2) deal effectively with such confrontations...
-
Sec. 338 Election. J.S. Bachman owns 100% of Legato Corporation stock, having a $437,500 basis. On December 31 of the current year, Legato Corporation reported the following balance sheet: Staccato...
-
Twelve years ago, Latoya transferred property to an irrevocable trust with a bank trustee. Latoya named Al to receive the trust income annually for life and Pat or Pats estate to receive the...
-
In 2012, Francois Landry, resident of Louisiana, funded the Landry Trust. The trust instrument stated that the beneficiaries of the trust shall be all the children of Claudette Landry Mercier, who is...
-
How does the SEC define abusive earnings management?
-
Here is the letter written by Sherron Watkins, CPA. Is she a whistle-blower? Did she commit a discreditable act under AICPA Rule \(501 ?\) Dear Mr. Lay, Has Enron become a risky place to work? For...
-
Using the Internet, find descriptions of recent fraud schemes based on SEC releases.
Study smarter with the SolutionInn App