On January 1, 2019, Fhebie and Randy formed a partnership, agreeing to share profits and losses of 40% and 60% respectively. Fhebie invested a parcel of land that cost him P 300,000. Randy invested cash of P 200,000 and an equipment costing P 100,000 but has a fair market value of P 120,000. The land was sold P 350,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Fhebie right after the formation? At what amount that investment of Randy be recorded?
On January 1, 2019, Fhebie and Randy formed a partnership, agreeing to share profits and losses of 40% and 60% respectively. Fhebie invested a parcel of land that cost him P 300,000. Randy invested cash of P 200,000 and an equipment costing P 100,000 but has a fair market value of P 120,000. The land was sold P 350,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Fhebie right after the formation? At what amount that investment of Randy be recorded?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 58P
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On January 1, 2019, Fhebie and Randy formed a
- How much should be the capital balance of Fhebie right after the formation?
- At what amount that investment of Randy be recorded?
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