Partners Ala, Gerald, and Mike share profits and losses 5:3:2, respectively, and their balance sheet on October 31, 2005 follows: Cash P 240,000 Accounts payable 600,000 Other assets 2,160,000 Ala, capital 444,000 Gerald, capital 780,000 Mike, capital 576,000 2,400,000 2,400,000 The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute? a. 487,500 b. 456,000 c. 450,000 d. 480,000
Partners Ala, Gerald, and Mike share
Cash P 240,000 Accounts payable 600,000
Other assets 2,160,000 Ala, capital 444,000
Gerald, capital 780,000
Mike, capital 576,000
2,400,000 2,400,000
The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute?
a. 487,500
b. 456,000
c. 450,000
d. 480,000
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