following capital balano and interests: A (20%) P50,000; B (30%) P70,000; and C (50%) P130,000. D purchases 10% partnership interest from A and B for P30,000. How much would be credited to D's capital under the following scenarios? NOT FOR SALE! All rights belongs to respective authon Please considar biuving the orininal cy Pertnership Disalution 93 List A> D's capital credit is based on the book values of the selling partners' capital balances List B> D's capital credit reflects the fair value of his interest in the partnership's net assets. The partnership's net assets on D's admission date are fairly valued.
following capital balano and interests: A (20%) P50,000; B (30%) P70,000; and C (50%) P130,000. D purchases 10% partnership interest from A and B for P30,000. How much would be credited to D's capital under the following scenarios? NOT FOR SALE! All rights belongs to respective authon Please considar biuving the orininal cy Pertnership Disalution 93 List A> D's capital credit is based on the book values of the selling partners' capital balances List B> D's capital credit reflects the fair value of his interest in the partnership's net assets. The partnership's net assets on D's admission date are fairly valued.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.
Transcribed Image Text:5. A, B and C are partners with the following capital balances
and interests: A (20%) P50,000; B (30%) P70,000; and C (50%)
P130,000, D purchases 10% partnership interest from A and B
for P30,000. How much would be credited to D's capital under
the following scenarios?
NOT FOR SALEI
All rights belongs to respective author
Please considar buyinn tha orininal c
Partnership Diselution
93
• List A> D's capital credit is based on the book values of
the selling partners' capital balances
• List B> D's capital credit reflects the fair value of his
interest in the partnership's net assets. The partnership's
net assets on D's admission date are fairly valued.
<List A>
<List B>
<List A>
<List B>
a. 12,000
b. 25,000
25,000
12,000
c. 25,000
d. 12.000
30,000
30,000
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