he capital accounts of the partnership of Nakpil, Ortiz, and Perez on June 1, 2005 are presented below with their respective profit and loss ratios: Nakpil P 139,200 1/2 Ortiz 208,800 1/3 Perez 96,000 1/6 Total P 444,000 On June 1, 2005, Quizon is admitted to the partnership when he purchased, for P 132,000, a proportionate interest from Nakpil and Ortiz in the net assets and profits of the partnership. As a result of a transaction, Quizon acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Nakpil and Ortiz upon the sale of a portion of their interest in the partnership to Quizon?
The capital accounts of the
Nakpil P 139,200 1/2
Ortiz 208,800 1/3
Perez 96,000 1/6
Total P 444,000
On June 1, 2005, Quizon is admitted to the partnership when he purchased, for P 132,000, a proportionate interest from Nakpil and Ortiz in the net assets and profits of the partnership. As a result of a transaction, Quizon acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied
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