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Fernando and Jose are partners with capital balances of P30,000 and P70,000, respectively. Fernando has a 30% interest in
At this time, the partnership has decided to admit Rosa and Linda as new partners. Rosa contributes cash of P55,000 for a 20% interest in capital and a 30% interest in profits and losses. Linda contributes cash of P10,000 and an equipment with a fair market value of P50,000 for a 25% interest in capital and a 35% interest in profits and losses. Linda is also bringing special expertise and clients contact into the new partnership. Using the bonus method, what is the amount of bonus?
a. P24,750
b. 18,250
c. 14,000
d. 7,500
please help me understand my activity and I hope you indicate the computations so that I can understand
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- Please help mearrow_forwardSue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $16,000 of cash and land with an FMV of $61,000. Her basis in the land is $26,000. Andrew contributes equipment with an FMV of $18,000 and a building with an FMV of $39,000. His basis in the equipment is $14,000, and his basis in the building is $26,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?arrow_forward
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