Numbers 1-4 (Investment Method Vs. Bonus Method) Thor and Loki formed a partnership and contributed the following assets with their respective fair values: Loki P220,000 300,000 Cash Land Building Equipment Thor P 180,000 Per partnership agreement, the equipment is to be valued at P120,000. Loki's land and building is subject to a P100,000 real estate mortgage which is assumed by the partnership. The mortgage has P10,000 interest accrued which is to be assumed by Loki. The fair value of the land and building is agreed to be equal to their respective book values. 100,000 1. How much is the final capital credit to Thor? A. 288,000 B. 420,000 C. 300,000 D. 432,000 B. 420,000 C. 300,000 D. 432,000 2. How much is the final capital credit to Loki? A. 288,000 Assuming instead that Thor and Lokd decided to divide capital in the ratio of 40:60, respectively and uses the bonus method, answer the following: B. 420,000 C. 300,000 D. 432,000 3. How much is the final capital credit to Thor? A. 288,000

Numbers 1-4 (Investment Method Vs. Bonus Method) Thor and Loki formed a partnership and contributed the following assets with their respective fair values: Loki P220,000 300,000 Cash Land Building Equipment Thor P 180,000 Per partnership agreement, the equipment is to be valued at P120,000. Loki's land and building is subject to a P100,000 real estate mortgage which is assumed by the partnership. The mortgage has P10,000 interest accrued which is to be assumed by Loki. The fair value of the land and building is agreed to be equal to their respective book values. 100,000 1. How much is the final capital credit to Thor? A. 288,000 B. 420,000 C. 300,000 D. 432,000 B. 420,000 C. 300,000 D. 432,000 2. How much is the final capital credit to Loki? A. 288,000 Assuming instead that Thor and Lokd decided to divide capital in the ratio of 40:60, respectively and uses the bonus method, answer the following: B. 420,000 C. 300,000 D. 432,000 3. How much is the final capital credit to Thor? A. 288,000

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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