7. On Apr. 30, 2019, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietorships. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibility for the P35,000 mortgage attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest Apr. 30, 2019, capital balance? a. b. Lacson Yacapin C. d. Bernal All capital account balances are equal

7. On Apr. 30, 2019, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietorships. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibility for the P35,000 mortgage attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest Apr. 30, 2019, capital balance? a. b. Lacson Yacapin C. d. Bernal All capital account balances are equal

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

7. On Apr. 30, 2019, Lacson, Yacapin, and Bernal formed a partnership by combining
their separate business proprietorships. Lacson contributed cash of P50,000.
Yacapin contributed property with a P36,000 carrying amount, a P40,000 original
cost, and P80,000 fair value. The partnership accepted responsibility for the
P35,000 mortgage attached to the property.
Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original
cost, and P55,000 fair value. The partnership agreement specifies that profits and
losses are to be shared equally but is silent regarding capital contributions. Which
partner has the largest Apr. 30, 2019, capital balance?
a.
b.
Lacson
Yacapin
C.
d.
Bernal
All capital account balances are equal.

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