The capital contribution of Gian should be
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Pan is the owner of an existing single proprietorship with net assets of P50,000. They agreed to record the assets and liabilities of Pan's business at book value. The book value of Pan's business liability is P60,000. Gian and Zet will contribute equally in cash 60% of the total capitalization based on the capital contribution of Pan. The capital contribution of Gian should be
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- Anton agrees to pay P24,500 for 35% of Amy's interest, but the assets must first be revalued, in the retail business owned by Angel and Amy whose capital balances are P65,800 and P85,000, respectively. Angel and Amy share profits and losses40% and 60%, respectively. What is the capital balance of Angel after the admission of Anton?Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 2:4:3 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. Undistributed profit was P120,000. How much is the capital balance of Dane after Ken’s retirement. Answer without peso signs but with commas.Juan, Pedro, and Pablo agreed on profit-sharing of 2:5:3. By the end of 2022, their respective capital balances after income distribution and profit sharing are as follows: Juan – P 90,000; Pedro – P 85,000; Pablo – P 120,000. The partners agreed to maintain their capital balance, but adjust their equity based on their profit-sharing ratio. How much cash will be distributed to/(Invested by) Pedro?
- Ranran, Sansan, and Tantan are forming a new partnership. The following are their contributions: • Ranran is to invest cash of P100,000 and stapling equipment originally costing P120,000 but has a second-had market value of P50,000. • Sansan is to invest cash of P 160,000. • Tantan, whose family is engaged in selling stapling equipment, is to contribute cash of P50,000, and a brand-new stapling equipment to be used by the partnership with a regular price of P 120,000 but which cost their family's busmess P100,000. • The partners agreed to share profits and loss equally.The capital balances upon formation are: a) Ranran - ₱220,000; Sansan - ₱160,000; Tantan - ₱220,000 b) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱170,000 c) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱220,000 d) Ranran - ₱176,666; Sansan - ₱176,666; Tantan - ₱176,668On July 1, 2019, GWEN, ASHE and JINX formed a partnership by combining their separate business proprietors. GWEN contributed cash of P700,000. ASHE contributed property with P360,000 carrying amount, a P500,000 original cost and P800,000 fair market value. The partnership accepted responsibility for theP450,000 mortgage attached to the property. JINX contributed equipment with a P300,000 carrying amount, P750,000 original cost, and P550,000 fair value. The partnership agreement specifies that profits and losses are to be shareequally but is silent regarding capital contributions. What is the capital balance of GWEN?JOhn and Mack are partners in a business. John's original capital was $39,700 and Mack's was $50,100. They agree to salaries of $11,300 and $18,600 for John and Mack, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will John'a share of the income be if the income for the year is $74,100?
- María and Bob form Robin Corporation. María transfers property worth $420,000 with a basis of $150,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 with a basis of $30,000 and legal services worth $15,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss Feedback of $ Bob recognizes ordinary income of $ Check My Work Section 351 is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain or loss under § 351 are that (1) property is transferred (2) in exchange for stock and (3) the property transferors are in control of the corporation after the exchange. b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $ Feedback Check My Work Incorrect , and Bob has a basis of $ 420,000 X in the stock. c. What is Robin…On July 1, 2019, Olga, Mega and Giga formed the OMG Partnership, by combining their separate business proprietorships. Olga contributed cash of P150,000. Mega contributed property with a carrying amount of P108,000, original cost of P120,000. and a fair value of P240,000. The partnership accepted responsibility for the P105,000 mortgage attached to the property. Giga contributed equipment with a carrying amount of P90,000, original cost of P225,000 and fair market value of P165,000. The partnership agreement specifies that profits and losses are to be shared equally. How much is the investment of Mega?K, B, and L are partners in a partnership who agree to form a corporation. Their capital balances are: K, P 100,000; B, P 100,000; and L, P 200,000. They share profits equally. All their assets and liabilities will be transferred to the corporation. The net assets of P 400,000 will be revalued at P 550,000. This revaluation comes from the land invested by L ten years ago at P 100,000. At P 1 par value per share, partners K will shares of a. 100,000 c. 183,333 b. 150,000 d. 166,667
- Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 2:3:5 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. How much is the capital balance of Dane after Ken’s retirement? Answer without peso signs but with commasMarie and Ramesh form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $190,800 in exchange for 400 shares of stock. Ramesh contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $450,560; fair market value $563,200) in exchange for 1,600 shares. Determine Marie and Ramesh's current income, gain, or loss and calculate the basis that each takes in the Roundtree stock. If an amount is zero, enter "0". Marie has income of $ of stock. Ramesh has income of $ and $ and $ basis in her 400 shares basis in his 1,600 shares of stock.On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $85,000 cash and Xie contributed land valued at $125,000 and a small building valued at $185,000. Also, the partnership assumed responsibility for Xie's $135,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $95,000, both are to receive an annual interest allowance of 15% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2023, Williams withdrew cash of $65,000 and Xie withdrew $50,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $165,000. Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the…
