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Batman and Robin agree to form a partnership. Batman is to contribute 135,600 cash and equipment that has a carrying value of 135,000 and a fair value of 115,000. The equipment however, has a mortgage attached to it and it is agreed by the partners that they will assume it. Robin, on the other hand contributed 240,000 cash. They share profits and losses in the ratio of 4:5. Furthermore, part of their agreement is to bring their initial capital in conformity with their profit and loss ratio. How much is the mortgage of the equipment? Pls provide solution A. 58,600 B. 10,600 C. 78,600 D. 34,600

Batman and Robin agree to form a partnership. Batman is to contribute 135,600 cash and equipment that has a carrying value of 135,000 and a fair value of 115,000. The equipment however, has a mortgage attached to it and it is agreed by the partners that they will assume it. Robin, on the other hand contributed 240,000 cash. They share profits and losses in the ratio of 4:5. Furthermore, part of their agreement is to bring their initial capital in conformity with their profit and loss ratio. How much is the mortgage of the equipment? Pls provide solution A. 58,600 B. 10,600 C. 78,600 D. 34,600

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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Batman and Robin agree to form a partnership. Batman is to contribute 135,600 cash and equipment that has a carrying value of 135,000 and a fair value of 115,000. The equipment however, has a mortgage attached to it and it is agreed by the partners that they will assume it. Robin, on the other hand contributed 240,000 cash. They share profits and losses in the ratio of 4:5. Furthermore, part of their agreement is to bring their initial capital in conformity with their profit and loss ratio.
How much is the mortgage of the equipment? Pls provide solution
A. 58,600 B. 10,600 C. 78,600 D. 34,600

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