Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano's business: Book Value Market Value Equipment (net of accumulated depreciation of P25,000) Furniture and Fixtures (net of accumulated depreciation of P5,000) Raw Materials P350,000 P300,000 75,000 50,000 35,000 25,000 100,000 Franchise Right 150,000 Total P610,000 P475,000 How much is the net worth assuming there is a mortgage note of P150,000 attached to the equipment? b. Will Benita Solido be able to afford to buy the business? a. C. Make the entry in the books of Benita.

Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano's business: Book Value Market Value Equipment (net of accumulated depreciation of P25,000) Furniture and Fixtures (net of accumulated depreciation of P5,000) Raw Materials P350,000 P300,000 75,000 50,000 35,000 25,000 100,000 Franchise Right 150,000 Total P610,000 P475,000 How much is the net worth assuming there is a mortgage note of P150,000 attached to the equipment? b. Will Benita Solido be able to afford to buy the business? a. C. Make the entry in the books of Benita.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 8FPC

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Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano’s business: a. How much is the net worth assuming there is a mortgage note of P150,000 attached to the equipment? b. Will Benita Solido be able to afford to buy the business? c. Make the entry in the books of Benita. Book Value Market Value Equipment (net of accumulated depreciation of P25,000) P350,000 P300,000 Furniture and Fixtures (net of accumulated depreciation of P5,000) 75,000 50,000 Raw Materials 35,000 25,000 Franchise Right 150,000 100,000 Total P610,000 P475,
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