Max, Alfred and Waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is P10,000, P30,000 and P50,000 respectively. Max has decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be P 200,000. Land with a book value of P30,000 has a fair value of P45,000. Max has agreed to receive P20,000 in exchange for her partnership interest. What amount should land be recorded on the partnership books? A. 20,000 B. 30,000 C. 45,000 D. 50,000
Max, Alfred and Waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is P10,000, P30,000 and P50,000 respectively. Max has decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be P 200,000. Land with a book value of P30,000 has a fair value of P45,000. Max has agreed to receive P20,000 in exchange for her partnership interest. What amount should land be recorded on the partnership books? A. 20,000 B. 30,000 C. 45,000 D. 50,000
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 54P
Related questions
Question
Max, Alfred and Waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is P10,000, P30,000 and P50,000 respectively. Max has decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be P 200,000. Land with a book value of P30,000 has a fair value of P45,000. Max has agreed to receive P20,000 in exchange for her partnership interest. What amount should land be recorded on the partnership books?
A. 20,000
B. 30,000
C. 45,000
D. 50,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT