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ich dividend when deciared does not create liability? O Cash dividend O Share dividend O Scrip dividend O Property dividend

ich dividend when deciared does not create liability? O Cash dividend O Share dividend O Scrip dividend O Property dividend

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which dividend when declared does not create liability? Cash dividend Share dividend Scrip dividend O Property dividend ARMIN and MIKASA formed a new partnership. ARMIN invested P525,000 in cash for her 60% interest in the capital and profits of the business. MIKASA contributes land that has an original cost of P70,000 and a fair market value of P122,500, and a building that has a tax basis of P87,500 and a fair market value of P157,500. The building is subject to a P70,000 mortgage that the partnership will assume. What amount of cash should MIKASA contribute? Your answer
Transcribed Image Text:Which dividend when declared does not create liability? Cash dividend Share dividend Scrip dividend O Property dividend ARMIN and MIKASA formed a new partnership. ARMIN invested P525,000 in cash for her 60% interest in the capital and profits of the business. MIKASA contributes land that has an original cost of P70,000 and a fair market value of P122,500, and a building that has a tax basis of P87,500 and a fair market value of P157,500. The building is subject to a P70,000 mortgage that the partnership will assume. What amount of cash should MIKASA contribute? Your answer
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