C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of P150,000 and his delivery vehicle originally bought at P160,000 but has a second hand value of P100,000. P is to contribute cash amounting to P200,000 and furniture worth P40,000 but was only acquired by P for P36,000. Partner A, whose family business is to sell computers contributed cash of P80,000 and computers and printers with a regular price of P160,000 but with a cost of P140,000. CPA Partnership stipulates their P and L ratio to be 3:2:3.

C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of P150,000 and his delivery vehicle originally bought at P160,000 but has a second hand value of P100,000. P is to contribute cash amounting to P200,000 and furniture worth P40,000 but was only acquired by P for P36,000. Partner A, whose family business is to sell computers contributed cash of P80,000 and computers and printers with a regular price of P160,000 but with a cost of P140,000. CPA Partnership stipulates their P and L ratio to be 3:2:3.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 43P

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C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of P150,000 and his delivery vehicle originally bought at P160,000 but has a second-hand value of P100,000. P is to contribute a cash amounting to P200,000 and furniture worth of P40,000 but was only acquired by P for P36,000. Partner A, whose family business is to sell computers contributed cash of P80,000 and computers and printers with a regular price of P160,000 but with cost of P140,000. CPA Partnership stipulates their P and L ratio to be 3:2:3. What are the capital balances of C, P and A respectively?
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