On January 1, 2017, Angel, Bea and Collen formed ABC & Co., a general professional partnership for the exercise of their common profession. Angel contributed a building with cost of P5M and accumulated LYCEUM OF SUBIC BAY Subic Bay Freeport Zone Advanced Financial Accounting Review Allan B. Santos CPA 2 | P a g e depreciation of P4M. Based on the city assessor’s records, the building has an assessed value of P2M. The building has an annotated mortgage payable amount to P500, 000 to be assumed by the partnership. On the other hand, Bea contributed 10,000 shares of stocks with par value of P200/share and prevailing quoted price of P300/share. On January 2, 2017m the building contributed by Angel was sold for 5.5M. If Colleen wants to have 20% capital interest in the newly formed partnership, how much cash shall be contributed by her? a. P875,000 b. P1,125,000 c. P2,125,000 d. P2,000,000
1. On January 1, 2017, Angel, Bea and Collen formed ABC & Co., a general professional
exercise of their common profession. Angel contributed a building with cost of P5M and accumulated
LYCEUM OF SUBIC BAY
Subic Bay Freeport Zone
Advanced Financial Accounting Review Allan B. Santos CPA
2 | P a g e
building has an annotated mortgage payable amount to P500, 000 to be assumed by the partnership.
On the other hand, Bea contributed 10,000 shares of stocks with par value of P200/share and prevailing quoted
price of P300/share. On January 2, 2017m the building contributed by Angel was sold for 5.5M. If Colleen
wants to have 20% capital interest in the newly formed partnership, how much cash shall be contributed
by her?
a. P875,000
b. P1,125,000
c. P2,125,000
d. P2,000,000
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