The loss on realization must be?

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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The loss on realization must be?
14. Presented below are data pertaining to the
interest of partners of MADI Partnership:
Dicky
P75,000
5,000
3/5
Mara
P50,000
10,000
2/5
Capital
Loan to Partnership
Profit and Loss ratio
The partners decided to liquidate the
partnership. The partnership liabilities totaled
P70,000 including the loans from the
partners. After realization of noncash assets,
the total cash on hand amounted P100,000.
The loss on realization must be
A. P25,000
B. P40,000
O C. P70,000
D. P95,000
e here to search
ASUS
ELA
Transcribed Image Text:14. Presented below are data pertaining to the interest of partners of MADI Partnership: Dicky P75,000 5,000 3/5 Mara P50,000 10,000 2/5 Capital Loan to Partnership Profit and Loss ratio The partners decided to liquidate the partnership. The partnership liabilities totaled P70,000 including the loans from the partners. After realization of noncash assets, the total cash on hand amounted P100,000. The loss on realization must be A. P25,000 B. P40,000 O C. P70,000 D. P95,000 e here to search ASUS ELA
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