On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying value of P64,000 and fair value of P52,000) and inventory (with cost of $24,000 and fair value of P30,000). They agreed to value machineries and inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1. On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the P100,000 net income of the partnership for the year using average capital as the basis would be closest to
On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying value of P64,000 and fair value of P52,000) and inventory (with cost of $24,000 and fair value of P30,000). They agreed to value machineries and inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1. On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the P100,000 net income of the partnership for the year using average capital as the basis would be closest to
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying
value of P64,000 and fair value of P52,000) and inventory (with cost FP24,000 and fair value of P30,000). They agreed to value machineries and
inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1.
On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the
P100,000 net income of the partnership for the year using average capital as the basis would be closest to
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