Please choose the correct LETTER of answer: 6 On January 2, 20xx, Lani and Lenny agreed to contribute and combine theirassets and talents to start a business. Lani contributed a land with a building thatshe purchased 10 years ago for P500,000. The current fair value of the land isP1,000,000. The book value of the building is P200,000 with accumulateddepreciation of P100,000. The current fair value of the building is P50,000.For what amount will Lani's capital account be credited on the books of thepartnership?a. P 500,000b. P 1,000,000c. P 1,050,000d. P 1,100,000e. None of the above

In a partnership firm, the assets that are contributed by either of the partners must be recorded at…

6 On January 2, 20xx, Lani and Lenny agreed to contribute and combine their assets and talents to start a business. Lani contributed a land with a building that she purchased 10 years ago for P500,000. The current fair value of the land is PI,000,000. The book value of the building is P200,000 with accumulated depreciation of P100,000. The current fair value of the building is P50,000. For what amount will Lani's capital account be credited on the books of the partnership? a. P 500,000 b. P 1,000,000 c. P 1,050,000 d. P 1,100,000 e. None of the above

6 On January 2, 20xx, Lani and Lenny agreed to contribute and combine their assets and talents to start a business. Lani contributed a land with a building that she purchased 10 years ago for P500,000. The current fair value of the land is PI,000,000. The book value of the building is P200,000 with accumulated depreciation of P100,000. The current fair value of the building is P50,000. For what amount will Lani's capital account be credited on the books of the partnership? a. P 500,000 b. P 1,000,000 c. P 1,050,000 d. P 1,100,000 e. None of the above

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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