6. Pen and May have capital balances of P450,000, and P650,000 as of December 31, 2018. 4 Pen and May share 40% and 60% in the profits or losses. The partners believe that the following assets should be adjusted: Accounts receivable Inventory Book Value P120,000 Market value P102,000 200,000 258,000 Wen is interested in buying a 40% interest from anyone of the partners. Direction: a. Entry to record adjustments. Extract the revised capital balances b. May is willing to sell 40% of her interest and profit at a price that will earn for her a profit of P15,000. How much will Wen pay? c. Give the entry to admit Wen for a 40% interest. d. Determine the revised partners' capital after admission. e. For 2019, taxable profit earned was P320,000. Give the profit share of each partner. 7. Refer to Exercise no. 6. Wen opted to pay cash to the partnership for a 40% interest after the current assets were adjusted. Direction: a. Use the revised partners' equity in a) above which represents 60% interest, to arrive at total agreed partners' equity.