Partnership Dissolution 1.The partnership of A, B, & C agree to sell D one-fourth of their respective capital and profit and loss Interest in exchange for a total payment of P20,000. The partners capital balances and profit and loss ratio are as follows: A (60%), P50,000; B (30%), P40,000; C (10%), P 20,000. If assets are to be revalued prior to the admission of D, how much is the capital balances of A, B, C after admission of D? 2.The computation of sale or settlement of the share or interest in a partnership is the same in retirement, withdrawal, Insolvency/incapacity and death of any of the partners if: a. If the sale or settlement is approved by all the remaining partners. b. If sale or settlement is approved by the retiring, withdrawing partner or his administrator in case of death or incapacity. c. The partners have equal interest in the partnership. d. All facts and circumstances are the same and the only distinction is the reason for disassociation. 3.Va and Vo form a partnership and have capital contribution of P200,000 and P400,000, respectively. They agree to accept Po into the partnership for a 1/5 interest. How much Po will have to invest? a. P150,000 b. P750,000 c. P600,000 d. P3,000,000

Partnership Dissolution 1.The partnership of A, B, & C agree to sell D one-fourth of their respective capital and profit and loss Interest in exchange for a total payment of P20,000. The partners capital balances and profit and loss ratio are as follows: A (60%), P50,000; B (30%), P40,000; C (10%), P 20,000. If assets are to be revalued prior to the admission of D, how much is the capital balances of A, B, C after admission of D? 2.The computation of sale or settlement of the share or interest in a partnership is the same in retirement, withdrawal, Insolvency/incapacity and death of any of the partners if: a. If the sale or settlement is approved by all the remaining partners. b. If sale or settlement is approved by the retiring, withdrawing partner or his administrator in case of death or incapacity. c. The partners have equal interest in the partnership. d. All facts and circumstances are the same and the only distinction is the reason for disassociation. 3.Va and Vo form a partnership and have capital contribution of P200,000 and P400,000, respectively. They agree to accept Po into the partnership for a 1/5 interest. How much Po will have to invest? a. P150,000 b. P750,000 c. P600,000 d. P3,000,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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