Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will Group of answer choices Be indifferent because the asset revaluation and bonus methods are the same Prefer asset revaluation method due to Isleta’s gain of P140,000 Prefer bonus method due to Isleta’s gain of P35,000 Prefer bonus method due to Isleta’s gain of P140,000
Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will Group of answer choices Be indifferent because the asset revaluation and bonus methods are the same Prefer asset revaluation method due to Isleta’s gain of P140,000 Prefer bonus method due to Isleta’s gain of P35,000 Prefer bonus method due to Isleta’s gain of P140,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will
Group of answer choices
Be indifferent because the asset revaluation and bonus methods are the same
Prefer asset revaluation method due to Isleta’s gain of P140,000
Prefer bonus method due to Isleta’s gain of P35,000
Prefer bonus method due to Isleta’s gain of P140,000
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