The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of Jan. 1, 20x1: Capital accounts Profit & loss ratios A, Capital 600,000 40% B, Capital 1,000,000 60% 1,600,000 On Jan. 1, 20x1, C was admitted into the partnership when he invested equipment with a historical cost of ₱400,000 and fair value of ₱320,000 for a 20% interest. The net assets of the partnership as of this date approximate their fair values. If the bonus method is used to record the admission of C, how much would be credited to C's capital account?
The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of Jan. 1, 20x1: Capital accounts Profit & loss ratios A, Capital 600,000 40% B, Capital 1,000,000 60% 1,600,000 On Jan. 1, 20x1, C was admitted into the partnership when he invested equipment with a historical cost of ₱400,000 and fair value of ₱320,000 for a 20% interest. The net assets of the partnership as of this date approximate their fair values. If the bonus method is used to record the admission of C, how much would be credited to C's capital account?
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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The following are the capital account balances and profit and loss
ratios of the partners in AB
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