1. Gigi and Hyatt have just formed a partnership. Gigi contributed cash of P1,250,000 and computer equipment that cost P550,000. The fair value of the computer is P350,000. Gigi has notes payable on the computer of P130,000 to be assumed by the partnership. Gigi is to have 60% capital interest in the partnership. Hyatt contributed only P900,000. The partners agreed to share profit and loss equally. How much is the net investment of Gigi?

a. 1,600,000

b. 1,800,000

c. 1,470,000

d. 1,670,000

2. The following data as of May 1, 2019 were taken from the records of Bench: Cash P11,000: Accounts receivable 234,536: Inventories 120,035: Land 603,000: Furniture & Fixtures 50,345: Other Assets 2,000: Accounts Payable P178,940: Notes Payable 200,000: Bench, Capital 641,976 The following data as of May 1, 2019 were taken from the records of Jag: Cash P22,354: Accounts receivable 567,890: Inventories 260,102: Building 428,267: Furniture & Fixtures 34,789: Other Assets 3,600: Accounts Payable P243,650: Notes Payable 345,000: Jag, Capital 728,352 Bench and Jag agreed to form a partnership by contributing their respective assets and equities subject to the following adjustments: a. Inventories of P 5,500 and P 6,700 are worthless in Benchs and Jags respective books. b. Accounts receivable of P 20,000 in Benchs book and P 35,000 in Jags book are uncollectible. c. Other assets of P 2,000 and P 3,600 in Benchs and Jags respective books are to be written off. The capital of Jag after the adjustments will be

a. 712,345

b.683,052

c. 717,894

d. 683,350