A and B decided to form a partnership on January 1, 2022. Partner A contributed building which costed him P450,000 in 2017 and computer equipment with a book value of P17.500 and fair market value of P15,000. The building has a recorded accumulated depreciation of P50,000. Partner B, on the other hand, contributed cash equal to the contribution of Partner A. Shortly after the formation of the partnership, the building was sold for P420,000. How much should be recorded as Partner A. Capital in the partnership books?

A and B decided to form a partnership on January 1, 2022. Partner A contributed building which costed him P450,000 in 2017 and computer equipment with a book value of P17.500 and fair market value of P15,000. The building has a recorded accumulated depreciation of P50,000. Partner B, on the other hand, contributed cash equal to the contribution of Partner A. Shortly after the formation of the partnership, the building was sold for P420,000. How much should be recorded as Partner A. Capital in the partnership books?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 37P

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