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Korra, Aang, and Roku are partners sharing profits on a 2:3:5 ratio. On January 1, 2021, Kyoshi was admitted into the partnership with a 20%

Korra, Aang, and Roku are partners sharing profits on a 2:3:5 ratio. On January 1, 2021, Kyoshi was admitted into the partnership with a 20% share in profits. The old partners shall continue to participate in profits in proportion to their original ratios.

For the year 2021, the partnership books showed a profit of P450,000. It was ascertained, however, that the following errors were made:

Accrued expenses not recorded at the end of 2020

5,000

Overstatement of 2020 ending inventory

48,000

Goods received and inventoried in 2020 but the related purchases not recorded

20,000

Income received in advance (unearned income), not recorded at the end of 2020

10,000

Prepaid expenses not recorded at the end of 2020

3,000

Assume the tax rate is 30%.

Required:

1. How much is the adjusted net income of the partnership after income tax?

2. How much would each of the following receive as his/her share in the adjusted net income

a. Korra

b. Aang

c. Roku

d. Kyoshi

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