From the problem below, determine the share of ACHE in the 2020 net income. ON June 1, 20 20, HEAD and Ache decided to form a partnerahip contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash Receivables (net) Inventory Fixed Asseta (net) Liabilitiea 250,000 100,000 125,000 500,000 250,000 150,000 80,000 150,000 400,000 250,000 The partnera agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 2019. P53. The current spot rate of FC1 is equivalent to 2. The receivables of HEAD and ACHE currently have a net realizable value of 804 it is agreed that their net realizable value must be adjusted to 758. HEAD'a inventory has a NRV of P140,000 and could be currently sold for P200,000. HEAD's machine was purchased last year with a 5-year life. It'a estimated current value is 90% of its cost. ACHE'a fixed asset has an 80% condition percentage. 3. 4. 5. If bought brand new, it'a price would be P550,000. The partnera are to share in profits and losses in the ratio of 6:4 and their capital in the partnership is to reflect this ratio. The partners further agreed to divide profits and losses in the following 6. 7. manneri A. Annual a alaries of P120,000 and P150,000 is to be given to HEAD and ACHE, which is to be taken out evenly during the year by each partner. B. 10% interest on beginning capital is to be given to each partner. . 201 bonua after interest is to be given to ACHE. For 2020, the partnership reported net income of P350 treating the salaries as a partnerahip expense.