Peter invests cash of $260,000 and inventory with a cost of $258,000 and a current value of $436,000 in the Apostles Partnership. In addition, Peter invests land with a cost of $6,500,000 and an appraised value of $8,200,000. The partnership agrees NOT to assume the P4,000,000 mortgage on the property. Peter is confident in paying the mortgage on his own. He did not want the partnership to be burdened with this mortgage at the start of the partnership business. Andrew invests equipment with a cost of $2,000,000 and accumulated depreciation of P640,000. Andrew's equipment has a fair market value of #645,000. How much cash must be invested by Andrew so that the two have equal balances in their capital
Peter invests cash of $260,000 and inventory with a cost of $258,000 and a current value of $436,000 in the Apostles Partnership. In addition, Peter invests land with a cost of $6,500,000 and an appraised value of $8,200,000. The partnership agrees NOT to assume the P4,000,000 mortgage on the property. Peter is confident in paying the mortgage on his own. He did not want the partnership to be burdened with this mortgage at the start of the partnership business. Andrew invests equipment with a cost of $2,000,000 and accumulated depreciation of P640,000. Andrew's equipment has a fair market value of #645,000. How much cash must be invested by Andrew so that the two have equal balances in their capital
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Peter invests cash of $260,000 and
inventory with a cost of P258,000 and
a current value of P436,000 in the
Apostles Partnership. In addition, Peter
invests land with a cost of $6,500,000
and an appraised value of $8,200,000.
The partnership agrees NOT to
assume the $4,000,000 mortgage on
the property. Peter is confident in
paying the mortgage on his own. He
did not want the partnership to be
burdened with this mortgage at the
start of the partnership business.
Andrew invests equipment with a cost
of $2,000,000 and accumulated
depreciation of 640,000. Andrew's
equipment has a fair market value of
#645,000. How much cash must be
invested by Andrew so that the two
have equal balances in their capital
accounts?
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