Ballesteros is retiring from the partnership and the partners have agreed that "other assets" should be adjusted to their fair value of P1,950,000 at December 31, 2020. They further agree that Ballesteros will receive P793,000 cash for his partnership interest exclusive of the loan, which is to be paid in full, and that no goodwill implied by Ballesteros' payment will be recorded. After Ballesteros' retirement, the capital balances of Abellana and Cabias, respectively, will be: a. P377,000 and P780,000 b. P330,570.50 and P826,429.50 c. P325,000 and P650,000 d. P237,714.75 and P594,285.25

Ballesteros is retiring from the partnership and the partners have agreed that "other assets" should be adjusted to their fair value of P1,950,000 at December 31, 2020. They further agree that Ballesteros will receive P793,000 cash for his partnership interest exclusive of the loan, which is to be paid in full, and that no goodwill implied by Ballesteros' payment will be recorded. After Ballesteros' retirement, the capital balances of Abellana and Cabias, respectively, will be: a. P377,000 and P780,000 b. P330,570.50 and P826,429.50 c. P325,000 and P650,000 d. P237,714.75 and P594,285.25

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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