Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi I need help on what is the answer to this problems? Below is the question and other concerns will be in the comment section
Hi I need help on what is the answer to this problems? Below is the question and other concerns will be in the comment section. I hope you can help me and surely I will give you full positive feedback.
2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano's business: Book Value Market Value Equipment (net of accumulated P350,000 P300,000 depreciation of P25,000) Furniture and Fixtures (net of 75,000 50,000 accumulated depreciation of P5,000) Raw Materials 35,000 25,000 Franchise Right 150,000 100,000 Total P610,000 P475,000 a. How much is the net worth assuming there is a mortgage note of P150,000 attached to the equipment? b. Will Benita Solido be able to afford to buy the business? C. Make the entry in the books of BenitaStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started