rs who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value di
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Brother and Sister are partners who are changing their
A. 320,000 C. 600,000
B. 440,000 D. 825,000
My answer is either B or D. Can you please show me the right answer by giving a detailed solution? Thank you.
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- Brother 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. if I included the revaluation surplus my answer will be 825,000 and my other answer if it is not included is 440k. Help me please.B and S are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date 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 $500,000 and a market value of $1,200,000. Two years after the profit and loss ratios are changed, the land is sold for $2,000,000. How much is the amount of change in S capital account at the date the land is sold?A. 320,000 B. 440,000 C. 600,000 D. 825,000Show the solution in good accounting form Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date 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 years after 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. 600,000 B. 440,000 D. 825,000
- Gomez and Cruz formed a partnership on January 1, 2020 and contributed the following assets: Gomez is to contribute land costing P200,000 but with a market value of P300,000. The partners agreed that the market value is P350,000. The land was subject to a chattel mortgage of P50,000 that was assumed by the partnership. Cruz is to contribute equipment costing P180,000 but with a fair market value of P150,000. The partners agreed that their interest on the partnership is 60% to Gomez and 40% to Cruz. Cruz is to invest enough cash to meet his capital requirement. The capital balance of Cruz at the formation isWreck and Ralph form a new partnership. Wreck invests P500,000 in cash. Ralph contributes land that has an original cost of P400,000 and a fair market value of P300,000, and a building that has a tax value basis of P400,000 and a fair market value of P500,000. The building is subject to a P120,000 mortgage that the partnership will assume. They agreed to have equal interest. What is the impact of the bonus method?Griffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000
- X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for $200,000, $175,000 and $375,000 respectively. Withdrawals of X, Y, and Z amounting to $125,000, $62,500 and $62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of $125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is: a. 125,000b. -125,000c. 625,000d. -625,000On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Louie invested a parcel of land that cost him P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Louie right after formation?a. P25,000 c. P60,000b. 30,000 d. 50,000Kaede, Itona, and Ritsu are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Itona decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. Kaede and Ritsu then agreed to pay Itona P230,000 for his withdrawal from the partnership. Prepare the journal entry to record Itona’s withdrawal under the Bonus method, assuming the revaluation increase or decrease was agreed by all partners to be recognized. Asset revaluation method.
- At the formation of Berry Partnership, Straw contributes land with a basis of $60,000 and a fair market value of $180,000, and Rasp contributes cash of $180,000. Straw and Rasp share profits and losses equally. When the land is sold two years later for $300,000, Rasp must recognize a gain of how much?Phox and Ranch have decided to form a partnership. They are in the process of agreeing on how the profits/losses will be divided. Assume that the company is anticipating net income of $80,000 for the first time period. Determine Phox's share of the net income if the partner's agree on an interest allowance of 10% on the original investments (Phox invested $20,000 and Ranch invested $30,000) and the remainder equally. Phox Ranch Total Interest Allowances Remainder 1:1 _____ ______ ______ Totals ? 80,000 Group of answer choices $40,000 $39,500 $30,000 $2,000On January 1, 2022, A, B, C are new lawyers and agreed to form a partnership. . A is to contribute cash of P150,000 and his computer originally costing P160,000 but has a fair value of P125,000. . B is to contribute cash of P180,000. . C is to contribute vehicle costing P400,000 with a fair value of P420,000. Partners agreed to share profits equally. Additional investments made were P80,000 by A and P100,000 by C. Withdrawals: Each partner is allowed to withdraw up amount from the business each year. During the year, Partnership incurs a loss of P60,000. Compute for the A's ending capital balance. to P60,000 per year. Assume further that each partner withdrew the maximum
