Problem 2 AA, BB, and CC agree to sell construction tools for a period of one month. AA agrees to construct a stand on the front the lawn of CC. CC will be paid P3,000 for cleaning up the lawn after the one-month selling period. AA, BB, and CC decide that net income, if any will be allocated rst by the P3,000 payment to CC and then by a 40% commission on individual sales. The balance will be distributed 75% to AA and 25% to BB. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be out-of- pocket and the responsibility of the individual. Sales to AA, BB, and CC are to be at cost, except that the ending inventory may be purchased at 50% of cost. All other sales are to be made at 100% markup on cost. The activity of the joint operation is as follows: a. AA construct the stand on the front lawn at a cost of P12,000. b. AA pays for P120,000 for various construction tools. CC pays P6,000 for permit to operate the concession or business. c. AA purchases additional construction tools for P180,000, using P50,000 contributed by BB and P120,000 of personal money Sales for the period were as follows: AA, P204,000; BB, P312,000. and CC, P?2,000. CC pays P10,300 for ofce supplies and these are distributed equally between AA, BB, and CC for their personal use at home. CC agrees to pay P6,000 for the stand. 93.9