Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35,000 which Delta will pay personally. The total capital after formation was P360,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. If the mortgage of P35,000 which is to be assumed by the partnership. How much is the fair value of the equipment?
Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35,000 which Delta will pay personally. The total capital after formation was P360,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. If the mortgage of P35,000 which is to be assumed by the partnership. How much is the fair value of the equipment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Charlie and Delta formed a partnership. Charlie invested cash worth
P85,000 and a machine. On the other hand, Delta contributed cash
worth P55,000 and an equipment which has a mortgage of P35,000
which Delta will pay personally. The total capital after formation was
P360,000. They also further agreed to reflect 55:45 ratio as to their
capital balances respectively. No other investment or withdrawal
occurred other than mentioned to reflect their capital ratio
agreement.
If the mortgage of P35,000 which is to be assumed by the
partnership. How much is the fair value of the equipment?
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