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A&B Co. is undergoing liquidation. Before the liquidation, A&B Co. had P40,000 cash, some non-cash assets, liabilities of P60,000, and the following capital balances: A (60%), P200,000 and B (40%), P400,000. The partnership incurred loss of P240,000 on the initial sale of non-cash assets. Only A is solvent. Requirements: Compute for the following: a. Carrying amount of the non-cash assets b. Net proceeds from the sale of non-cash assets

A&B Co. is undergoing liquidation. Before the liquidation, A&B Co. had P40,000 cash, some non-cash assets, liabilities of P60,000, and the following capital balances: A (60%), P200,000 and B (40%), P400,000. The partnership incurred loss of P240,000 on the initial sale of non-cash assets. Only A is solvent. Requirements: Compute for the following: a. Carrying amount of the non-cash assets b. Net proceeds from the sale of non-cash assets

FINANCIAL ACCOUNTING
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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A&B Co. is undergoing liquidation. Before the liquidation, A&B Co. had P40,000 cash, some non-cash assets, liabilities of P60,000, and the following capital balances: A (60%), P200,000 and B (40%), P400,000. The partnership incurred loss of P240,000 on the initial sale of non-cash assets. Only A is se 5. hers on solvent. Requirements: Compute for the following: a. Carrying amount of the non-cash assets b. Net proceeds from the sale of non-cash assets c. Cash distributions to A and B s: apital
Transcribed Image Text:A&B Co. is undergoing liquidation. Before the liquidation, A&B Co. had P40,000 cash, some non-cash assets, liabilities of P60,000, and the following capital balances: A (60%), P200,000 and B (40%), P400,000. The partnership incurred loss of P240,000 on the initial sale of non-cash assets. Only A is se 5. hers on solvent. Requirements: Compute for the following: a. Carrying amount of the non-cash assets b. Net proceeds from the sale of non-cash assets c. Cash distributions to A and B s: apital
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