Non-cash Assets Land Building Machinery and Equipment Cost P 100,000 1,000,000 500,000 Comments Cost is equal to the fair value Fair value of which is 80% of its cost Fair value of which is 70% of its cost There is a P200,000 mortgage on the building which the partners agree not to assume in the partnership. A contributes cash on P650,000. Compute the total assets of the partnership upon formation.

Non-cash Assets Land Building Machinery and Equipment Cost P 100,000 1,000,000 500,000 Comments Cost is equal to the fair value Fair value of which is 80% of its cost Fair value of which is 70% of its cost There is a P200,000 mortgage on the building which the partners agree not to assume in the partnership. A contributes cash on P650,000. Compute the total assets of the partnership upon formation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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