On January 1, 20x1, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P500,000. B contributed land with a P360,000 carrying amount, a P400,000 original cost, and P800,000 fair value. The partnership accepted responsibility for the P350,000 mortgage attached to the property. C contributed equipment with a P300,000 carrying amount, a P750,000 original cost, and P550,000 fair value. The partnership specifies that profits and losses are to be shared equally but is silent regarding capital contributions. How much is the initial capital of the partnership? a. 1,250,000 b. 1,450,000 c. 1,500,000 d. 1,550,000

On January 1, 20x1, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P500,000. B contributed land with a P360,000 carrying amount, a P400,000 original cost, and P800,000 fair value. The partnership accepted responsibility for the P350,000 mortgage attached to the property. C contributed equipment with a P300,000 carrying amount, a P750,000 original cost, and P550,000 fair value. The partnership specifies that profits and losses are to be shared equally but is silent regarding capital contributions. How much is the initial capital of the partnership? a. 1,250,000 b. 1,450,000 c. 1,500,000 d. 1,550,000

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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