Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to becontributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are asfollows:JaneKathyBook Value Fair ValueBook ValueFair ValueReceivableInventoriesEquipmentPayableP 22,50022,50037,50011,250P 22,50033,75030,00011,250P 60,00067,5007,500P67,50071,2507,500The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determinethe total assets of the partnership.

It is assumed that fair value is used to record the assets and rest cash is taken as balancing…

Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable P 22,500 P 22,500 22,500 37,500 11,250 33,750 30,000 11,250 P 60,000 67,500 7,500 Inventories Equipment Payable P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.

Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable P 22,500 P 22,500 22,500 37,500 11,250 33,750 30,000 11,250 P 60,000 67,500 7,500 Inventories Equipment Payable P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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