X, Y and Z decided to form XYZ Partnership. It was agreed that X will contribute an

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X, Y and Z decided to form XYZ Partnership. It was agreed that X will contribute an equipment with assessed value of P300,000 with historical cost of P800,000 and accumulated depreciation of P500,000. On the date of formation, the fair value of equipment was P 400,000.

Y will contribute a land and building with carrying amount of P1,200,000 and fair value of P1,500,000. The land and building are subject to a mortgage payable amounting to P300,000 to be assumed by the partnership.
The partners agreed that Y will have 40% capital interest in the partnership. The partners also agreed that Z will contribute sufficient cash to the partnership.

Net income for the year is P400,000. How much profit should be allocated to X?

Posted Date: Dec 13, 2021 11:29 AM

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X, Y and Z decided to form XYZ Partnership. It was agreed that X will contribute an

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