On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Louie invested a parcel of land that cost him P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Louie right after formation? a. P25,000 c. P60,000 b. 30,000 d. 50,000
On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Louie invested a parcel of land that cost him P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Louie right after formation? a. P25,000 c. P60,000 b. 30,000 d. 50,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 30P
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Question
On December 1, 2020, Louie and Kaye Ann formed a
and losses
P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date,
three hours after formation of the partnership. How much should be the capital balance of
Louie right after formation?
a. P25,000 c. P60,000
b. 30,000 d. 50,000
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