Problem 5Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000.What is the amount of change in Sister’s capital account at the date the land is sold?A. 320,000 C. 600,000B. 440,000 D. 825,000
Problem 5Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000.What is the amount of change in Sister’s capital account at the date the land is sold?A. 320,000 C. 600,000B. 440,000 D. 825,000
Chapter1: Financial Statements And Business Decisions
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Problem 5Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000.What is the amount of change in Sister’s capital account at the date the land is sold?A. 320,000 C. 600,000B. 440,000 D. 825,000
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