Question: PROBLEM 1-4 A, B, and C are forming a new partnership each contributing cash of P200,000 and their respective office equipment and supplies valued at

PROBLEM 1-4 A, B, and C are forming a new partnership

PROBLEM 1-4 A, B, and C are forming a new partnership each contributing cash of P200,000 and their respective office equipment and supplies valued at P100,000, P200,000, and P300,000, respectively. A's noncash contribution is his own developed audit software valued at cost which he could sell for trice the amount. Partners agree to admit his software at market value and they will share profits equally. How much is the capital credit to each partner upon formation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

PROBLEM 1 - 3 C, P and A are new CPA's and are to form an accounting partnership. C is to contribute cash of P75,000 and his computer originally bought at P80,000 but has a second-hand value of...

Q:

Activity 2: Multiple Choice Problem A, B and C have a capital balance of P200,0 10, P300, 060 and 10 000, respectively, and share profits in the ratio 20%, 60%, 209 respectively. The partners agreed...

Q:

The following information pertained to T. Lianza Corporation: Dividends on its 1,000 shares of 6%, P10 par value cumulative preference shares have not been declared for three years. Treasury stock...

Q:

Problem Solving (15 points) 1. Draper and Becker decide to organize a partnership. Draper invests P25,000 cash, and Becker contributes P5,000 and equipment having a book value of P7,000 and a fair...

Q:

Problem Solving (15 points) 1. Draper and Becker decide to organize a partnership. Draper invests P25,000 cash, and Becker contributes P5,000 and equipment having a book value of P7,000 and a fair...

Q:

Max, Jones, and waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is 10,000, 30,000, and 50,000 respectively. Max had decided to withdraw from the...

Q:

Can you please answer tutor, thank you 1 If the partners have no agreement on how to divide profits or losses, the ideal is to divide it based on their ________________. Select one: a. Capital...

Q:

Can you please answer tutor, thank you 1 If the partners have no agreement on how to divide profits or losses, the ideal is to divide it based on their ________________. Select one: a. Capital...

Q:

Can you please answer tutor, thank you 1 If the partners have no agreement on how to divide profits or losses, the ideal is to divide it based on their ________________. Select one: a. Capital...

Q:

Can you please answer tutor, thank you 1 If the partners have no agreement on how to divide profits or losses, the ideal is to divide it based on their ________________. Select one: a. Capital...

Q:

What must be the equation y = f(x) of the axis of the slightly curved beam AB (see figure) before the load is applied in order that the load P, moving along the bar, always stays at the same level? -

Q:

Starting with -d-glucose and using acid (H1) as a catalyst, write out all of the steps in the mechanism for the mutarotation process.

Q:

Scikit - Learn - - ) Present an overview of the major features of the Python library Scikit - Learn, based on the lectures and personal research

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

Prepare an electronic rsum.

Q:

Strengthen your personal presence.

Q:

Identify the steps to follow in preparing an oral presentation.