On May 1, Rose, and Yana formed a partnership and agreed to share profits and losses 1:3 respectively. Rose contributed a parcel of land with a fair market value of P1,000,000. Yana contributed P3,000,000 cash. On May 1, immediately after formation of partnership, the land was sold for P1,100,000. WHat amount should be recorded in Rose's capital account on formation of the partnership? a. P1,000,000 b. P1,050,000 c. P1,100,000 d. P1,025,000
On May 1, Rose, and Yana formed a partnership and agreed to share profits and losses 1:3 respectively. Rose contributed a parcel of land with a fair market value of P1,000,000. Yana contributed P3,000,000 cash. On May 1, immediately after formation of partnership, the land was sold for P1,100,000. WHat amount should be recorded in Rose's capital account on formation of the partnership? a. P1,000,000 b. P1,050,000 c. P1,100,000 d. P1,025,000
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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Question
On May 1, Rose, and Yana formed a
a. P1,000,000
b. P1,050,000
c. P1,100,000
d. P1,025,000
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