1. Twinkle, Sheep and Bus formed a partnership. Twinkle contributed cash of PS0,000. Sheep contributed equipment with historical cost of P70,000, carrying amount of P180,000, and fair value of P90,000. Bus contributed building with historical cost of P1,000,000, carrying amount of P480,000, and fair value of P690,000. The partnership will assume the unpaid mortgage of P580,000 on the building. Which partner has the largest capital account balance on partnership formation?

1. Twinkle, Sheep and Bus formed a partnership. Twinkle contributed cash of PS0,000. Sheep contributed equipment with historical cost of P70,000, carrying amount of P180,000, and fair value of P90,000. Bus contributed building with historical cost of P1,000,000, carrying amount of P480,000, and fair value of P690,000. The partnership will assume the unpaid mortgage of P580,000 on the building. Which partner has the largest capital account balance on partnership 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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