On June 1, 2021, Jungkook and Jimin formed a partnership. Jungkook is to invest assets at fair which are yet to be agreed upon. Jungkook is to transfer his liabilities and is to contribute sufficient cash to bring his total capital of P300,000 which is 60% of the total capital of the partnership. Details are regarding the books values of Jungkook's business assets and liabilities and their corresponding valuations are: Agreed Values 58,000 5,000 107,000 32,000 16,400 27,000 Book Values Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Store Equipment Accumulated Depreciation Office Equipment Accumulated Depreciation Accounts Payable 58,000 4,200 98,400 32,000 19,000 27,000 14,200 8,600 56,000 56,000 Jimin agrees to invest cash of P70.000 and merchandise inventory valued at current market price.
On June 1, 2021, Jungkook and Jimin formed a partnership. Jungkook is to invest assets at fair which are yet to be agreed upon. Jungkook is to transfer his liabilities and is to contribute sufficient cash to bring his total capital of P300,000 which is 60% of the total capital of the partnership. Details are regarding the books values of Jungkook's business assets and liabilities and their corresponding valuations are: Agreed Values 58,000 5,000 107,000 32,000 16,400 27,000 Book Values Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Store Equipment Accumulated Depreciation Office Equipment Accumulated Depreciation Accounts Payable 58,000 4,200 98,400 32,000 19,000 27,000 14,200 8,600 56,000 56,000 Jimin agrees to invest cash of P70.000 and merchandise inventory valued at current market price.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 38P
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At what value of the merchandise to be invested by Jimin?Required to answer. Single choice.
Transcribed Image Text:On June 1, 2021, Jungkook and Jimin formed a partnership. Jungkook is to invest assets at fair
which are yet to be agreed upon. Jungkook is to transfer his liabilities and is to contribute sufficient
cash to bring his total capital of P300,000 which is 60% of the total capital of the partnership.
Details are regarding the books values of Jungkook's business assets and liabilities and their
corresponding valuations are:
Agreed Values
58,000
Book Values
Accounts Receivable
Allowance for doubtful accounts
Merchandise Inventory
Store Equipment
Accumulated Depreciation
Office Equipment
Accumulated Depreciation
Accounts Payable
58,000
4,200
98,400
5,000
107,000
32,000
16,400
32,000
19,000
27,000
27,000
14,200
8,600
56,000
56,000
Jimin agrees to invest cash of P70,000 and merchandise inventory valued at current market price.
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