MM, NN and OO are partners with Capital balances on December 31, 2021 of 300,000, 300,000 and 200,000 respectively. Profits are shared equally. OO wishes to withdraw and it is agreed that OO is to take certain equipment with second value of 50,000 and a note for the balance of OO’s interest. The equipment are carried on the books at 65,000. Brand new equipment my costs 80,000. Compute for (1) OO’s acquisition of the second hand equipment that will result in the reduction of capital; (2)
MM, NN and OO are partners with Capital balances on December 31, 2021 of 300,000, 300,000 and 200,000 respectively. Profits are shared equally. OO wishes to withdraw and it is agreed that OO is to take certain equipment with second value of 50,000 and a note for the balance of OO’s interest.
The equipment are carried on the books at 65,000. Brand new equipment my costs 80,000. Compute
for (1) OO’s acquisition of the second hand equipment that will result in the reduction of capital; (2)
the value of the note that OO got from the partnership\s liquidation.
a. (1)15,000 each for MM and NN; (2) 150,000
b. (1)5,000 each for MM, NN and OO ; (2) 145,000
c. (1)5,000 each for MM, NN and OO ; (2) 195,000
d. (1) 7,500 each for Mm and NN ; (2) 145,000
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