Win and Jhim formed a partnership. Win invested cash worth Php85,000 and a machine. On the other hand, Jhim contributed cash worth Php55,000 and equipment which has a mortgage of Php35,000 which Jhim will pay personally. The total capital after the formation was Php360,000. They also agreed to reflect 45:55 capital ratio. No other investment or withdrawal occurred other than mentioned above to reflect their capital ratio agreement. How much is the fair value of the machine?

Win and Jhim formed a partnership. Win invested cash worth Php85,000 and a machine. On the other hand, Jhim contributed cash worth Php55,000 and equipment which has a mortgage of Php35,000 which Jhim will pay personally. The total capital after the formation was Php360,000. They also agreed to reflect 45:55 capital ratio. No other investment or withdrawal occurred other than mentioned above to reflect their capital ratio agreement. How much is the fair value of the machine?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 23P

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