15,000 5. Ables and Galang executed a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by: Ables Galang Cash P20,000 P30,000 Inventory 15,000 Building 40,000 Furniture and Equipment The building is subject to a mortgage of P10,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for Ables and Galang at the formation of the partnership? Ables Galang a. P35,000 P85,000 b. P35,000 P75,000 C. P55,000 P55,000 d. P60,000 P60,000 ce to ng 6. Orcajada invested in a partnership a parcel of land which cost his father P200,000. The land had a market value of P300,000 when Orcajada inherited it three years ago. Currently, the land is independently appraised at P500,000 even though Orcajada insisted that he wouldn't take P900,000 for it." The land should be recorded in the accounts of the partnership at a. P300,000. b. P500,000. Chapter 1: Basic Considerations and Formation | 1-45