On June 1, 2013, May and Nora formed a partnership. May is to invest assets at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On June 1, 2013, May and Nora formed a partnership. May is to invest assets at fair values. She is to transfer her liabilities and is to contribute sufficient cash to bring her total capital to P210,000 which is 70% of the total capital of the partnership. Details regarding the book values of May's business assets and liabilities and their corresponding fair values are: Book values Accounts Receivable (net) Inventory Equipment Notes Payable P53,800 98,400 25,800 56,000 Fair values Nora agrees to invest cash of P42,000 and merchandise valued at current market price. 1. What is the value of the merchandise to be invested by Nora? 2. What is the amount of cash to be invested by May? P53,000 107,000 34,000 56,000 On June 1, 2013, May and Nora formed a partnership. May is to invest assets at fair values. She is to transfer her liabilities and is to contribute sufficient cash to bring her total capital to P210,000 which is 70% of the total capital of the partnership. Details regarding the book values of May's business assets and liabilities and their corresponding fair values are: Book values Accounts Receivable (net) Inventory Equipment Notes Payable P53,800 98,400 25,800 56,000 Fair values Nora agrees to invest cash of P42,000 and merchandise valued at current market price. 1. What is the value of the merchandise to be invested by Nora? 2. What is the amount of cash to be invested by May? P53,000 107,000 34,000 56,000
Expert Answer:
Answer rating: 100% (QA)
To determine the value of the merchandise to be invested by Nora we need to calculate the total fair ... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
On December 30, Year 7, Pepper Company agreed to form a business combination with Salt Limited. Pepper issued 2,320 of its common shares for all (2,900) of the outstanding common shares of Salt. This...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Why do the requirements drift once a project is under way?
-
What is the difference between an unenforceable contract and a void contract?
-
Repeat Problem 16.27, except change the jet to water at 50°F and the diameter to 0.75 in. Repeat Problem Figure 16.22 shows a device for clearing debris using a 1½-in-diameter jet of air...
-
Fill in the Blank. The ___________ spectral density function is an even function of \(\omega\).
-
Prepare the journal entries to record the following transactions on Derrick Companys books using a perpetual inventory system. (a) On March 2, Derrick Company sold $900,000 of merchandise to Rose...
-
From the intensity function for two point sources, the location and intensity of the peak can easily be calculated. It is very different for the intensity function of a single finite-width slit in...
-
1. Find the optimal March shipment schedule and its total transportation cost for each of the following: a. Cotton b. Polyester c. Silk 2. The company will be opening a silk-making department in the...
-
Caring Shop is a gift shop located in The Natural History Museum. The caring shop has annual sales revenue of $850,000. Additionally, the Natural History Museum has an investment income of $550,000...
-
A rigid container contains saturated water at a pressure of 2 bar and a quality of 0.42. The water undergoes a process in which it is heated to a fi nal temperature of 540C. Determine the fi nal...
-
Refer to the transactions for Blue Jay Delivery Service in Problem 3-6. Required 1. Prepare journal entries on the books of Blue Jay to record the transactions entered into during the month. Ignore...
-
The U.S. Womens National Teams (USWNTs) pay discrimination case against the U.S. Soccer Federation was chronicled in the 2021 documentary LFG (Nix & Fine, 2021). After a lawsuit dismissal in May...
-
Describe how the annual payment bond valuation formula is changed to evaluate semiannual coupon bonds, and write the revised formula.
-
Which of the following cases meet the substantively the same governing body criterion and indicate that a component unit should be blended in a city's financial statements instead of discretely...
-
Lululemon - Quality control issues leading to product recalls.explain the Supply Chain & Operations of the Organization The problem in detail, how it originated or occurred, what Actions the company...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
The following information has been provided by your client, Mr. Stanley Norman: Additional Information (1) The above capital gains do not include capital gains from qualified farm property or...
-
Barltrop Limited is a Canadian public company involved in the software consulting business. Its controller provided you with the following information related to its 2012 taxation year ended December...
-
Ms. Andrews purchased a home in Waterloo in 2002 at a cost of $86,000. She lived in the home until January 29, 2005, at which time she moved to Vancouver and rented a home in Vancouver. At the time...
-
Using data from a random sample of elementary schools, a researcher regresses average test scores on the fraction of students who qualify for reduced-price meals. The regression indicates a negative...
-
In the study of cigarette demand in this chapter, suppose we used as an instrument the number of trees per capita in the state. Is this instrument relevant? Is it exogenous? Is it a valid instrument?
-
In the demand curve model of Equation (12.3), is \(\ln \left(P_{i}^{\text {butter }} ight)\) positively or negatively correlated with the error, \(u_{i}\) ? If \(\beta_{1}\) is estimated by OLS,...
Study smarter with the SolutionInn App