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In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decide to admit
In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decide to admit C to the partnership. A and B agree that some of the inventory is obsolete. The inventory account is decreased before C is admitted. C invests P50,000 for a 60% interest in capital.
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SOLUTION To determine the amount of inventory written down we need to know the total value of the inventory and the extent of the writedown agreed upo...
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
