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Compute for the share from the net income of GHI.

Compute for the share from the net income of GHI.

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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ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for the Philippine Centennial celebration. The following were agreed upon: ➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the joint arrangement. GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were to be allowed interest on their capital contributions at 6% per annum, and any remainder was to be divided equally among the three partners. After a year, the joint arrangement was terminated and the following information was provided: a. original capital contributions used to purchase tickets, were P3,630,000 and P4,950,000, respectively, from ABC and DEF; b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of P3,798,300 out of joint arrangement funds. Compute for the share from the net income of GHI.
Transcribed Image Text:ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for the Philippine Centennial celebration. The following were agreed upon: ➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the joint arrangement. GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were to be allowed interest on their capital contributions at 6% per annum, and any remainder was to be divided equally among the three partners. After a year, the joint arrangement was terminated and the following information was provided: a. original capital contributions used to purchase tickets, were P3,630,000 and P4,950,000, respectively, from ABC and DEF; b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of P3,798,300 out of joint arrangement funds. Compute for the share from the net income of GHI.
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