On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each. In addition to Carlo's cash contribution, he invested furniture and fixtures costing P150,000 but with an agreed value of P80,000. Moreover, Jamie invested land with a fair value of P1,200,000 but with professional appraiser's value of P1,110,000 subject to unpaid mortgage of $250,000. Profit or loss is to be shared equally between the partners. How much will be the total capitalization of the partnership after the investment of Carlo and Jamie?
On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each. In addition to Carlo's cash contribution, he invested furniture and fixtures costing P150,000 but with an agreed value of P80,000. Moreover, Jamie invested land with a fair value of P1,200,000 but with professional appraiser's value of P1,110,000 subject to unpaid mortgage of $250,000. Profit or loss is to be shared equally between the partners. How much will be the total capitalization of the partnership after the investment of Carlo and Jamie?
Chapter1: Financial Statements And Business Decisions
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Q1. Please answer the question correctly with solution ASAP. Thank you.
Transcribed Image Text:On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each.
In addition to Carlo's cash contribution, he invested furniture and fixtures costing P150,000 but
with an agreed value of P80,000.
Moreover, Jamie invested land with a fair value of P1,200,000 but with professional appraiser's
value of P1,110,000 subject to unpaid mortgage of P250,000.
Profit or loss is to be shared equally between the partners.
How much will be the total capitalization of the partnership after the investment of Carlo and
Jamie?
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