A desire to purchase one-fourth of capital and profit and loss interest in the partnership of B, C, and D. The three partners agree to se A 20% of their respective capital and profit and loss interests in exchange for a total payment of P100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to A following B с D 168,000 104,000 48,000 50% 35% 15% Compute the capital balance to be credited to A.
A desire to purchase one-fourth of capital and profit and loss interest in the partnership of B, C, and D. The three partners agree to se A 20% of their respective capital and profit and loss interests in exchange for a total payment of P100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to A following B с D 168,000 104,000 48,000 50% 35% 15% Compute the capital balance to be credited to A.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 20P
Related questions
Question
Transcribed Image Text:A desire to purchase one-fourth of capital and profit and loss interest in the partnership of B, C, and D. The three partners agree to sell
A 20% of their respective capital and profit and loss interests in exchange for a total payment of P100,000. The payment is made
directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately
before the sale to A following
B
C
D
168,000
104,000
48,000
50%
35%
15%
Compute the capital balance to be credited to A.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT