Equipment with a cost of P800,000 and accumulated depreciation of P240,000 is contributed to a new partnership by PARADIS ARMIN. The current market value of the equipment is P760,000. The replacement value of the equipment is P1,080,000. The equipment would be recorded on the partnership books at:
Equipment with a cost of P800,000 and accumulated depreciation of P240,000 is contributed to a new partnership by PARADIS ARMIN. The current market value of the equipment is P760,000. The replacement value of the equipment is P1,080,000. The equipment would be recorded on the partnership books at:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Equipment with a cost of P800,000
and accumulated depreciation of
P240,000 is contributed to a new
partnership by PARADIS ARMIN. The
current market value of the
equipment is P760,000. The
replacement value of the equipment
is P1,080,000. The equipment would
be recorded on the partnership books
at:
Your answer
Indirect materials are: Item 1:
CONVERSION COST, Item 2:
MANUFACTURING COST, Item 3:
PRIME COST
O A. Yes Yes Yes
B. Yes Yes No
C. No Yes Yes
O D. No No No](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc00836db-6bd4-497a-ba1a-2baeb1b06d39%2F6e0f6438-0995-433d-a225-808c57e7d93a%2Fgn8nk0ja_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Equipment with a cost of P800,000
and accumulated depreciation of
P240,000 is contributed to a new
partnership by PARADIS ARMIN. The
current market value of the
equipment is P760,000. The
replacement value of the equipment
is P1,080,000. The equipment would
be recorded on the partnership books
at:
Your answer
Indirect materials are: Item 1:
CONVERSION COST, Item 2:
MANUFACTURING COST, Item 3:
PRIME COST
O A. Yes Yes Yes
B. Yes Yes No
C. No Yes Yes
O D. No No No
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