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KHU and THO form a partnership. KHU contributes in KHUTHO partnership a personal computer that he has used at home in non business related activities.
KHU and THO form a partnership. KHU contributes in KHUTHO partnership a personal computer that he has used at home in non business related activities. KHU had paid P10,000 for the computer 2 years ago. Annual depreciation was P2,000. The current market value of the computer is P9,000. The partners, after reviewing BIIR rules, assigned the computer a useful life of 5 years and the value per BIR assessment was P7,500. For financial reporting purposes, at what amount should the computer be recorded in the partnership ledger?
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