A. 68,000; 32,000; 50,000B. 66,667; 33,333; 50,000C. 50,000, 50,000, 50,000D. 60,000, 60,000, 60,00015. In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a1:4 ratio, respectively. They decide to admit C to the partnership. A andB agree that some of theinventory is obsolete. The inventory account is decreased before C is admitted. C investsP50,000 for a 60% interest in capital. What is the amount of inventory written down?A. 166,667B. 100,000C. 250,000D. 0

Here in this question we are required to calculate how much inventory balance written down in…

Answered: 15. In the AB partnership, A's capital…

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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23. The capital account balances for April & May LLP on January 1, 2020, were as follows: April, capital P200,000 May, capital P100,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
X, Y and Z are partners and have equities of P 5 000 each. With the consent of X and Y, Z is about to sell ½ of his equity to W for a bag of popcorn and P 50 cash. Give the entry on the books of the partnership to record the admission of W
n the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decided to admit C to the partnership. A and B agree that some of the inventory is obsolete. C contributed P50,000 for a 40% interest in capital and 30% in the profit/loss sharing. Determine the amount of inventory write-down.
5 )
3. Show solution in good accounting form
5. Which of the following items do not retain their character as they flow through to the partnership? More than one answer may be correct. a. Long-term capital gains. b. Short-term capital gains. c. Depreciation recapture income. d. Dividend income. 6. Sal and Nan owned 90% and 10% of the SN Partnership, respectively. SN operated a foundry. Sal sold stock in ExxonMobil with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary. 7. Sal and Nan owned 90% and 10% of the SN partnership, respectively. SN operated a foundry. Sal sold a machine, capital asset to him but to be used in the SN business operations, with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary.
am. 124.
Which of the following would be classified as disproportionate distributions? Assume A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB partnership. Question 18 options: a. Partner A receives $6,000 cash and Partner B receives a capital asset valued at $6,000. b. Partner A received $6,000 cash and Partner B receives inventory items valued at $6,000 (basis $3,500). c. Both partners receive unrealized accounts receivables with a basis of $0 and a value of $6,000. d. Items a. and c. represent disproportionate distributions e. Items b. and c. represent disproportionate distributions.
Kk51.

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