C was admitted to the partnership when he invested P60,000 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: Cash Equipment Accounts payable Provision for warranty obligation A, Capital (40%) Capital (60%) Carrying amount Fair value 20,000 320,000 10,000 5,000 N/A N/A 20,000 340,000 10,000 130,000 220,000 How much is the capital balance of B after the admission of C?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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C was admitted to the partnership when he invested P60,000 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
20,000
320,000
10,000
20,000
340,000
Cash
Equipment
Accounts payable
Provision for warranty obligation
A, Capital (40%)
B, Capital (60%)
10,000
130,000
220,000
5,000
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 P60,000 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 20,000 320,000 10,000 20,000 340,000 Cash Equipment Accounts payable Provision for warranty obligation A, Capital (40%) B, Capital (60%) 10,000 130,000 220,000 5,000 N/A N/A How much is the capital balance of B after the admission of C?
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