1. Damon and D' Caprio formed a partnership with Damon investing cash of P 150,000. How much should D' Caprio invest for a 40% ownership in assets and profit?

a. P 100,000 b. P 60,000 c. P 225,000 d. P 90,500

2. Amy and Cynia agreed to form a partnership. Amy's business which amounted to P 500,000 was audited and appraised at 75% of its book value.

(A) If they agreed that Cynia should invested cash equal to half of Amy's investment, she should invest

a. P 250,000 b. P 500,000 c. P 375,000 d. P 187,500

(B) If they agreed, instead, that Cynia should invest P 325,000 cash and that each partner should be credited for an equal share based on total actual contributions, the bookkeeper should recognize

a. Goodwill for Amy b. Bonus for Amy c. Bonus for Amy d. Goodwill for Cynia