AL and DRIX decided to form a partnership. AL contributed P200,000 cash, equipment with a historical cost of P250,000 and fair value of P225,000, furniture with a historical cost of P150,000 and a fair value of P75,000 and P400,000 worth of parcel of land with a mortgage of P100,000. The partnership decided to assume the liability. Required: Answer the following 1. What is the capital balance of AL 2. Assuming DRIX will invest cash equivalent to AL’s net investment, how much is the capital balance of DRIX? 3. Assuming DRIX will invest cash equivalent to 20% of total partnership capital, how much is the capital balance of DRIX? 4. Using the assumption in number 3, how much is the total asset of the partnership after the contribution of AL and DRIX?
AL and DRIX decided to form a partnership. AL contributed P200,000 cash, equipment with a historical cost of P250,000 and fair value of P225,000, furniture with a historical cost of P150,000 and a fair value of P75,000 and P400,000 worth of parcel of land with a mortgage of P100,000. The partnership decided to assume the liability.
Required: Answer the following
1. What is the capital balance of AL
2. Assuming DRIX will invest cash equivalent to AL’s net investment, how much is the capital balance of DRIX?
3. Assuming DRIX will invest cash equivalent to 20% of total partnership capital, how much is the capital balance of DRIX?
4. Using the assumption in number 3, how much is the total asset of the partnership after the contribution of AL and DRIX?
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