In May 1998, Imelda, a partner of an accounting firm decided to withdraw when the partners’ capital balances were: Mikee, P600,000; Raul, P600,000; Imelda, P400,000. It was agreed that Imelda is to take the partnership’s fully depreciated computer with a second hand value of P24,000 that cost the partnership P36,000.   If profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda?        Mikee             Raul­__  a. P600,000         P600,000 b. 592,000           592,000 c. 608,000            608,000 d. 612,000            612,000   please help me understand my activity and I hope you include the computations so that I can understand

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 28P
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In May 1998, Imelda, a partner of an accounting firm decided to withdraw when the partners’ capital balances were: Mikee, P600,000; Raul, P600,000; Imelda, P400,000. It was agreed that Imelda is to take the partnership’s fully depreciated computer with a second hand value of P24,000 that cost the partnership P36,000.

 

If profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda?

       Mikee             Raul­__ 

a. P600,000         P600,000

b. 592,000           592,000

c. 608,000            608,000

d. 612,000            612,000

 

please help me understand my activity and I hope you include the computations so that I can understand

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