Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?
Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 28P
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Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?
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