Cye and Dye have just formed a partnership. Cye contributed cash of P126,000 and computer equipment that cost P54,000. The computer had been used in his sole proprietorship and had been depreciated to P24,000. The fair value of the equipment is  P36,000. Cye also contributed a note payable of P12,000 to be assumed by the partnership. Cye is to have 60% interest in the partnership. Dye contributed only P90,000 cash.  Cye should make an additional investment (withdrawal) of: a.P(76,800)       b.P96,000 c.P(15,000) d.P84,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
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Cye and Dye have just formed a partnership. Cye contributed cash of P126,000 and computer equipment that cost P54,000. The computer had been used in his sole proprietorship and had been depreciated to P24,000. The fair value of the equipment is  P36,000. Cye also contributed a note payable of P12,000 to be assumed by the partnership. Cye is to have 60% interest in the partnership. Dye contributed only P90,000 cash.

 Cye should make an additional investment (withdrawal) of:

a.P(76,800)      

b.P96,000
c.P(15,000)
d.P84,000
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