total increase in the capital

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Hallo and Ween are partners in Halloween Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2022, the partners revised their profits and loss sharing ratio into 40% to Hallo and 60% to Ween. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P800,000. On July 1, 2022, the land was sold for P1,400,000. 

Determine the total increase in the capital of Hallo on July 1, 2022. 

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