5. Assume that a partnership had assets with a book value of P240,000 and a market value of P195,000, outside liabilities of P70,000, loans payable to partner Able of P20,000, and capital balances for partners Able, Baker, and Chapman of P70,000, P30,000, and P50,000. How much would Able receive upon liquidation of the partnership assuming profits and losses are allocated equally? a. P70,000 b. P90,000 C. P75,000

A and B formed a partnership and agreed to divide initial capital equally even if A contributed P100,000 and B contributed P84,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, what amount should be debited to B's unidentifiable assets?

T2 would like to purchase a partnership interest from T1. At the time of the purchase, T1's outside basis in the partnership interest is $20,000, which includes $3,000 of liabilities of the partnership allocable to T1. Determine T2's initial outside basis in the partnership interest if he acquires it from T1 for $27,500 in cash. Type your answer...

8. Dunn and Grey are partners with capital account balances of $60,000 and $90,000, respectively. They agree to admit Zorn as a partner with a one-third interest in capital and profits, for an investment of $100,000, after revaluing the assets of Dunn and Grey. Goodwill to the original partners should be a. $0 b. $33,333 c. $50,000 d. $66,667

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A and B formed a 60:40 capital interest in AB Partnership with the following contribution:                           A                      B Land         P1,000,000               - Building              -                 P 800,000 Mortgage           -                       50,000 They agreed that the land will be valued at P1,500,000 and the mortgage will be assumed by the partnership. Part of the agreement also provided that the building already reflects its fair value. Assuming A is the base, how much should B contribute or (withdraw) to be in accordance with their capital interest? 133,333250,000200,000(P83,333) Assuming B is the base, how much should A contribute or (withdraw) to be in accordance with their capital interest?(P300,000)(P375,000)200,000125,000

For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…

Which of the following would be classified as disproportionate distributions?  Assume A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB partnership.   Question 18 options:   a.  Partner A receives $6,000 cash and Partner B receives a capital asset valued at $6,000.   b.  Partner A received $6,000 cash and Partner B receives inventory items valued at $6,000 (basis $3,500).   c.  Both partners receive unrealized accounts receivables with a basis of $0 and a value of $6,000.   d.  Items a. and c. represent disproportionate distributions   e.  Items b. and c. represent disproportionate distributions.

2. Hammer and Nail formed a partnership. Hammer contributed equipment with original cost of P370,000 and fair value of P300,000 while Nail contributed cash of P180,000. Hammer and Nail agreed to have a 60:40 interest in the partnership and that their initial capital credits should reflect this fact. A partner's capital account should be increased accordingly by way of additional cash investment. Which of the partners should make an additional investment and by how much? a. Hammer, P20,000 b. Nail, P20,000 c. Hammer, P70,000 d. Nail, P70,000

4. Under partnership