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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. Under Partnership Liquidation
Transcribed Image Text:1. Twinkle, Sheep and Bus formed a partnership. Twinkle
contributed cash of PS0,000, Sheep contributed equipment
with historical cost of P700,000, 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?
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