A new partner Dan, was admitted on June 1, 2022 who purchased Allan's capital by giving his car costing P250,000, but with a book value of P125,000, and a market value of P100,000. Allan, capital was P350,000. How much was credited to Dan. Capital?
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- Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following independent situation: 1. Sonny invests P279,000 for half of Patrick's capital. The money goes to Patrick. Cash 240,000 Sonny, Capital 240,000 2. Sonny directly purchases a one-fourth (1/4) interest from Rachel and Patrick by paying Rachel, P192,000, and Patrick, P216,000. The equipment account is undervalued before Sonny's admission. 3. Sonny invests the amount needed to give him one-third (1/3) interest in the capital of the partnership. No goodwill or bonus is recorded. 4. Sonny invests P312,000 for a one-fourth (1/4) interest. Rachel and Patrick agree that some of the inventory is obsolete before Sonny's admission. 5. Sonny invests P360,000 one a one-fifth (1/5) interest. Profits and loss are to be shared by Rachel, Patrick, and Sonny 45:30:25. Goodwill is not recorded. 6. Sonny invests P600,000 for a one-third (1/3) interest. Profits and losses are to be shared by Rachel, Patrick, and…Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 2:3:5 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. How much is the capital balance of Dane after Ken’s retirement? Answer without peso signs but with commasDane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 2:4:3 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. Undistributed profit was P120,000. How much is the capital balance of Dane after Ken’s retirement. Answer without peso signs but with commas.
- James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of JamesJames and Laura are forming a partnership. James will invest a truck with a book value of Pio,000 and a fair market value of P14,000. Laura will invest a building with a book value of P30,000 and a fair market value of P42,000 with a mortgage of P15,000. What amount should be recorded in James' capital account? *A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of $40. A) What are the consequences to each of the parties? B) Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer C) Suppose instead that the mortgage was for $60. Suppose further that this mortgage was incurred on the purchase of the property many years ago. Would this change your answer? D) Same as (c) except that A also transfers accounts payable of $10. A is a cash basis taxpayer. How would this change your answer?
- 2 A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of S100 and is subject to a mortgage of $40. a. What are the consequences to each of the parties? b. Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer?James and Laura are forming a partnership. James will invest a truck with a book value of P10,000 and a fair market value of P14,000. Laura will invest a building with a book value of P30,000 and a fair market value of P42,000 with a mortgage of P15,000. What amount should be recorded in Laura's capital account? *Dellosa bought Longalong's interest in the Seechua and Longalong Partnership by a Php500,000 direct payment to Longalong. The capital balances before the sale were P240,000 and P360,000 respectively. What will be the amount in Dellosa's Capital account? a.) P300,000 b.)P360,000 c.)P480,000 d.)P500,000 e.)None of the above
- Mr. Amit owns a flat. On 5-4-2020, he decides and starts a business of dealing in sale and purchse of flats. He treats this flat as a part of stock in trade for this newly commenced business. He entered into a deal of selling this flat to one of his client on 30/.3/2021 and booked a profit of Rs5 Lakhs. Discuss the term capital asset, the relevant provision applicable, implications of above transaction, provision in his hand under the relevant head of Indian Income Tax Act.n X8, Erin had the following capital gains (losses) from the sale of her investments: $2,000 LTCG, $25,000 STCG, ($9,000) LTCL, and ($15,000) STCL. What is the amount and nature of Erin's capital gains and losses? Show your working!James and Laura are forming a partnership. James will invest a truck with a book value of Pi0,000 and a fair market value of P14,000. Laura will invest a building with a book value of P30,000 and a fair market value of P42,000 with a mortgage of P15,000. At what amount should the building be recorded? *