How much is the total equity of the partnership immediately after the admission of C?
How much is the total equity of the partnership immediately after the admission of C?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need a complete solution to this problem in good accounting form. Correct answer is 1,800,000.
A and B are partners with the following capital balances and profit-sharing percentages: A (40%) ₱750,000 and B (60%) ₱1,050,000. A and B admitted C into the partnership when C purchased 20% of the capital interests of A and B for ₱400,000. The partnership’s net assets on C’s admission date were fairly valued. How much is the total equity of the partnership immediately after the admission of C?
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