Problem 5Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000.What is the amount of change in Sister’s capital account at the date the land is sold?A. 320,000 C. 600,000B. 440,000 D. 825,000

Problem 5Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000.What is the amount of change in Sister’s capital account at the date the land is sold?A. 320,000 C. 600,000B. 440,000 D. 825,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 18P

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Show the solution in good accounting form Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two years after the profit and loss ratios are changed, the land is sold for P2,000,000. What is the amount of change in Sister's capital account at the date the land is sold? A. 320,000 C. 600,000 B. 440,000 D. 825,000
Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two years after the profit and loss ratios are changed, the land is sold for P2,000,000. What is the amount of change in Sister’s capital account at the date the land is sold? A. 320,000 C. 600,000 B. 440,000 D. 825,000 My answer is either B or D. Can you please show me the right answer by giving a detailed solution? Thank you.
Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000. if I included the revaluation surplus my answer will be 825,000 and my other answer if it is not included is 440k. Help me please.
B and S are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of $500,000 and a market value of $1,200,000. Two years after the profit and loss ratios are changed, the land is sold for $2,000,000. How much is the amount of change in S capital account at the date the land is sold?A. 320,000 B. 440,000 C. 600,000 D. 825,000
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