Utah, Atlanta and Detroit have capital balances of P 150,000, P 200,000, and P 300,000, respectively and they share profits and losses in the ration of 4:3:3. Miami purchases 15% interest in equity and profits from the partners for P 150,000. a) What would be the new capital balance of Utah, Atlanta and Detroit after the admission of Miami? Detroit Utah Atlanta b) Assume that some of the assets of the partnership are undervalued, how much is the undervaluation in assets?

Utah, Atlanta and Detroit have capital balances of P 150,000, P 200,000, and P 300,000, respectively and they share profits and losses in the ration of 4:3:3. Miami purchases 15% interest in equity and profits from the partners for P 150,000. a) What would be the new capital balance of Utah, Atlanta and Detroit after the admission of Miami? Detroit Utah Atlanta b) Assume that some of the assets of the partnership are undervalued, how much is the undervaluation in assets?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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