The capital contribution of Gian should be
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Pan is the owner of an existing single proprietorship with net assets of P50,000. They agreed to record the assets and liabilities of Pan's business at book value. The book value of Pan's business liability is P60,000. Gian and Zet will contribute equally in cash 60% of the total capitalization based on the capital contribution of Pan. The capital contribution of Gian should be
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- A is the owner of an existing single proprietorship with net assets of 50,000. they agreed torecord the assets and liabilities of A’s business at book value. The book value of A’s businessliability is 60,000. B and C will contribute equally in cash 60% of the total capitalization based onthe capital contribution of A. the capital contribution of B should be A. 37,500B. 75,000C. 82,500D. 165,000Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also asole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to betaken by the partnership at their respective book value. Gideon is to contribute cash equal to 1/2 ofthe total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’scash contribution should be A. 100,000B. 150,000C. 200,000D. 300,000When Kevin and Marshall formed the equal KM LLC, the fair market values of their interests were each $100,000. Kevin contributed $60,000 cash, equipment with a basis of $0 and a fair market value of $10,000, and a small parcel of land in which he had a basis of $50,000 and that was valued at $ 30,000. Marshall contributed a cash basis account receivable that was valued at $100,000 and in which his basis was $0. Kevin has a basis in his partnership interest of $110,000 and Marshall's basis is $0. A.) True B.) False
- On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate business proprietorships. Tanya contributed cash of P50,000. Cecille contributed property with P48,000 carrying amount, P56,000 original cost, and P45,000 fair value. The said property has an attached mortgage of P10,000, which will be assumed by the partnership. Marie Contributed a piece of equipment with P50,000 carrying amount, P85,000 original cost, and P45,000 fair value. It was stated in the Articles of Partnership that profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution? Justify the answer in no more than five (5) sentences.Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing P378,000. The equipment had been used in her sole proprietorship and had been 70% depreciated. The agreed value of the equipment is P104,000. Anna also has a note payable of P84,000 that will be assumed by the partnership. Ben contributed only the merchandise inventory from his sole proprietorship carried in the books at P650,000 but with fair value of P630,000. The partnership agreed on a profit and loss ratio of 50% each. How much is Anna's capital immediately after the partnership formation?Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $ 15,000 $ 15,000 Land* 120,000 440,000 Totals $ 135,000 $ 455,000 *Nonrecourse liability secured by the land equals $210,000. Each member received a one-third capital and profits interest in the LLC. What tax basis do Jerry and Dave have in their LLC interests?
- Ariel and Mia agree to combine their business assets to form the A&M corporation. Ariel's business assets are worth $135,000 and have a basis of $80,000. Mia's business assets are worth $200,000, have a basis of $165,000, and are encumbered by a $90,000 mortgage, which A&M will assume. Mia will also contribute $25,000 in cash to equalize their contributions.A, B and C are partners sharing profits in the ratio of 3:3:2. On June 30, their capital balances are as follows: A, 720, 000; B, 480, 000 and C, 360, 000. Dong will directly purchase 1/3 of A’s interest for 250, 000 and no bonus or goodwill is to be recognize before the direct purchase of A’s interest. In addition, Dong is also to invest 380, 000 cash in the partnership. The total capital of the partnership after the admission is to be 2, 000, 000. Dong’s interest after his admission by direct purchase and investment is to be 30%. a. What is the total bonus, if any, that is given to the old partner? b. What is the total goodwill, if any, that is given to the old partners? c. What is the capital balance of A after the admission by direct purchase and admission by investment of Dong? d. What is the capital balance of B after the admission by direct purchase and admission by investment of Dong? e. What is the capital balance of C after the admission by direct purchase and…A, B and C are partners sharing profits in the ratio of 3:3:2. On June 30, their capital balances are as follows: A, 720, 000; B, 480, 000 and C, 360, 000. Dong will directly purchase 1/3 of A’s interest for 250, 000 and no bonus or goodwill is to be recognize before the direct purchase of A’s interest. In addition, Dong is also to invest 380, 000 cash in the partnership. The total capital of the partnership after the admission is to be 2, 000, 000. Dong’s interest after his admission by direct purchase and investment is to be 30%. c. What is the capital balance of A after the admission by direct purchase and admission by investment of Dong? d.What is the capital balance of B after the admission by direct purchase and admission by investment of Dong?
- partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. Ifthe company earned P40,000 during the period, what is the effect on Tugade’s Capital?A, B and C are partners sharing profits in the ratio of 3:3:2. On June 30, their capital balances are as follows: A, 720, 000; B, 480, 000 and C, 360, 000. Dong will directly purchase 1/3 of A’s interest for 250, 000 and no bonus or goodwill is to be recognize before the direct purchase of A’s interest. In addition, Dong is also to invest 380, 000 cash in the partnership. The total capital of the partnership after the admission is to be 2, 000, 000. Dong’s interest after his admission by direct purchase and investment is to be 30%. e. What is the capital balance of C after the admission by direct purchase and admission by investment of Dong? f. What is the total equity of the partnership after the admission by direct purchase and admission by investment of Dong?Chris invests land and building worth $100k and $400k. Crown invests cash and inventory at $70k and $30k. They agree to have equal shares. How would you record it under the goodwill and bonus method?