Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will Group of answer choices Be indifferent because the asset revaluation and bonus methods are the same Prefer asset revaluation method due to Isleta’s gain of P140,000 Prefer bonus method due to Isleta’s gain of P35,000 Prefer bonus method due to Isleta’s gain of P140,000

Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will Group of answer choices Be indifferent because the asset revaluation and bonus methods are the same Prefer asset revaluation method due to Isleta’s gain of P140,000 Prefer bonus method due to Isleta’s gain of P35,000 Prefer bonus method due to Isleta’s gain of P140,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 55P

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