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C was admitted to the partnership when he invested P250,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Carrying amount Fair value 100,000 Cash Equipment Accounts payable Provision for pending litigation A, Capital (40%) B, Capital (60%) 100,000 750,000 870,000 50,000 50,000 20,000 300,000 N/A N/A 500,000 low much is the capital balance of B after the admission of C?

C was admitted to the partnership when he invested P250,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Carrying amount Fair value 100,000 Cash Equipment Accounts payable Provision for pending litigation A, Capital (40%) B, Capital (60%) 100,000 750,000 870,000 50,000 50,000 20,000 300,000 N/A N/A 500,000 low much is the capital balance of B after the admission of C?

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. 572,000
B. 548,400
C. 582,400
D. 594,200
C was admitted to the partnership when he invested P250,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Carrying amount Fair value 100,000 Cash 100,000 870,000 50,000 Equipment Accounts payable Provision for pending litigation A, Capital (40%) B, Capital (60%) 750,000 50,000 20,000 300,000 500,000 N/A N/A How much is the capital balance of B after the admission of C?
Transcribed Image Text:C was admitted to the partnership when he invested P250,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Carrying amount Fair value 100,000 Cash 100,000 870,000 50,000 Equipment Accounts payable Provision for pending litigation A, Capital (40%) B, Capital (60%) 750,000 50,000 20,000 300,000 500,000 N/A N/A How much is the capital balance of B after the admission of C?
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