10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. (see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!) Direction: Make entries to record Romy’s admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued.

10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. (see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!) Direction: Make entries to record Romy’s admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 44P

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