A and B decided to liquidate their partnership. The partnership's records show the followinginformation:Cash20,000Non-cash assets80,000Total assets100,000Liabilities15,000Loan payable to Partner ALoan payable to Partner BA, capital (80%)B, capital (20%)Total liabilities and equity10,00017,00036,00022,000100,000All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. Howmuch did B receive in the cash distribution to the partners? As consideration, the government pays the operator PSOM per year in Years 3 to 10. FFC makes the following estimates atcontract inception:ContractStand-aloneYearselling priceForecast cost + 20%Forecast cost+ 20%costsConstruction services1P5050Operation servicesReconditioning3-1020Forecast cost + 40%9.10Forecast cost + 10%All cash flows are assumed to take place at the end of the year. FFC determines that the implied interest rate in thecontract is 33.05%.

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A and B decided to liquidate their partnership. The partnership's records show the following information: Cash 20,000 Non-cash assets 80,000 Total assets 100,000 15,000 10,000 Liabilities Loan payable to Partner A Loan payable to Partner B A, capital (80%) B, capital (20%) Total liabilities and equity 17,000 36,000 22,000 100,000 All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. How much did B receive in the cash distribution to the partners?

A and B decided to liquidate their partnership. The partnership's records show the following information: Cash 20,000 Non-cash assets 80,000 Total assets 100,000 15,000 10,000 Liabilities Loan payable to Partner A Loan payable to Partner B A, capital (80%) B, capital (20%) Total liabilities and equity 17,000 36,000 22,000 100,000 All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. How much did B receive in the cash distribution to the partners?

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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