J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share profits and losses according to the following percentages: 50% for A, 20% for B, and 30% for C. D is to join the partnership upon contributing P55,OOO to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable 20,000 overvalued; Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What is the bonus of N in the new partnership assuming bonus method?

J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share profits and losses according to the following percentages: 50% for A, 20% for B, and 30% for C. D is to join the partnership upon contributing P55,OOO to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable 20,000 overvalued; Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What is the bonus of N in the new partnership assuming bonus method?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 55P

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