K, B, and L are partners in a partnership who agree to form a corporation. Their capital balances are: K, P 100,000; B, P 100,000; and L, P 200,000. They share profits equally. All their assets and liabilities will be transferred to the corporation. The net assets of P 400,000 will be revalued at P 550,000. This revaluation comes from the land invested by L ten years ago at P 100,000. At P 1 par value per share, partners K will shares of a. 100,000 c. 183,333 b. 150,000 d. 166,667
K, B, and L are partners in a partnership who agree to form a corporation. Their capital balances are: K, P 100,000; B, P 100,000; and L, P 200,000. They share profits equally. All their assets and liabilities will be transferred to the corporation. The net assets of P 400,000 will be revalued at P 550,000. This revaluation comes from the land invested by L ten years ago at P 100,000. At P 1 par value per share, partners K will shares of a. 100,000 c. 183,333 b. 150,000 d. 166,667
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K, B, and L are partners in a partnership who agree to form a corporation. Their capital balances are: K, P 100,000; B, P 100,000; and L, P 200,000. They share profits equally. All their assets and liabilities will be transferred to the corporation. The net assets of P 400,000 will be revalued at P 550,000. This revaluation comes from the land invested by L ten years ago at P 100,000. At P 1 par value per share, partners K will shares of
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