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Doctolero and Eslava formed a new partnership. Doctolero invested p525,000 in cash for her 60% interest in the capital and profits of the business. Eslava

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Doctolero and Eslava formed a new partnership. Doctolero invested p525,000 in cash for her 60% interest in the capital and profits of the business. Eslava contributes land that has an original cost of P70,000 and a fair market value of P122,500, and a building that has a tax basis of P87,500 and a fair market value of P157,500. The building is subject to a P70,000 mortgage that the partnership will assume. What amount of cash should Eslava contribute? a. P70,000 b. P140,000 c. P192,500 d. P262,50012. The partnership of Pedralbes and Quinonez was formed on March 31, 2020. At that date, Pedralbes invested P225,000 cash and office equipment valued at P135,000. Quinonez invested P315,000 cash, merchandise valued at P495,000, and furnitures valued at P450,000, subject to a notes payable of P225,000 (which the partnership assumes). The partnership provides that Pedralbes and Quinonez share profits and losses 25:75, respectively. The agreement further provides that the partners should initially have an equal interest in the partnership capital. Under the goodwill and the bonus method, what is the total capital of the partners after the formation? Bonus Method Goodwill Method a. P1, 395,000 P2,070,000 b. P1,620,000 P2,295,000 C. P1,350,000 P1,845,000 d. P1,575,000 P1,800,000 13. A partner's drawing account, in substance is a. A capital account b. A contra-capital account c. A salary expense account d. A loan account 4. On March 1, 2020, Apalla and Cabanero formed a partnership with ead contributing the following assets: Apalla Cabahero Cash P502,500 ! P 1, 172,500 Machinery and equipment 418,750 1,256,250 Building 3,768,750 Furniture and fixtures 167,500The building is subject to mortgage loan of P1,340,000, which is to be assumed by the partnership. Agreement provides that Apalla and Cabahero share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in Cabanero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500 15. The same information in the previous number, except that the mortgage loan is not assumed by the partnership. On March 1, 2020 the balance in Cabanero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500

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