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A and B formed a partnership. The following are their capital contributions: A B Cash Accounts receivable Equipment Total 200,000 50,000 250,000 350,000 350,000
A and B formed a partnership. The following are their capital contributions: A B Cash Accounts receivable Equipment Total 200,000 50,000 250,000 350,000 350,000 Additional information: The accounts receivable includes a P15,000 account that is deemed uncollectible. The equipment is over-depreciated by P25,000. The equipment was obtained by B through financing. The related loan payable has an unpaid balance of P125,000 which the partnership assumes on repaying. Question: Which partner has the higher capital credit, and by how much?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
