Terence and Romeo are partners who share profits and losses 60% and 40%, respectively. Their capital accounts on July 1, 2017 were as follows: Terence - P 280,000; Romeo - P240,000. On this date, they agree to admit Arwind as a new partner. 1. If Arwind purchased % of the equity of Terence for P 100,000, how much would be capital the total partnership after Arwind's admission? 2. If Arwind invested P 180,000 for a % interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Terence after Arwind's admission? 3. If Arwind invested P 130,000 for a 25% interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Romeo after the admission of Arwind?

Terence and Romeo are partners who share profits and losses 60% and 40%, respectively. Their capital accounts on July 1, 2017 were as follows: Terence - P 280,000; Romeo - P240,000. On this date, they agree to admit Arwind as a new partner. 1. If Arwind purchased % of the equity of Terence for P 100,000, how much would be capital the total partnership after Arwind's admission? 2. If Arwind invested P 180,000 for a % interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Terence after Arwind's admission? 3. If Arwind invested P 130,000 for a 25% interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Romeo after the admission of Arwind?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 20P

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