On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner AA: Cash, P300,000 Machinery and equipment, P250,000 Furniture and fixtures, P100,000 Partner BB: Cash, P700,000 Machinery and equipment, P750,000 Building, P2,250,000 The building is subject to a mortgage loan of P800,000, which will not be assumed by the partnership. What is the capital balance of partner BB upon formation?

On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner AA: Cash, P300,000 Machinery and equipment, P250,000 Furniture and fixtures, P100,000 Partner BB: Cash, P700,000 Machinery and equipment, P750,000 Building, P2,250,000 The building is subject to a mortgage loan of P800,000, which will not be assumed by the partnership. What is the capital balance of partner BB upon formation?

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 21P

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