Abner and Bimbo have just formed partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 60% interest in the partnership net assets. Bimbo is to contribute only, merchandise with a fair value of P 1,890,000.
Abner and Bimbo have just formed partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 60% interest in the partnership net assets. Bimbo is to contribute only, merchandise with a fair value of P 1,890,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abner and Bimbo have just formed partnership , Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 60% interest in the partnership net assets. Bimbo is to contribute only, merchandise with a fair value of P 1,890,000.
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