Ll On June 30, 2010 GB, the sole proprietor of the 0H Company, expands the company and establish a partnership with I] and KL. The partners plan to share prots and losses as follows: 0H, 50%; I], 25% and KL, 25%. They also agree that the beginning capital balances of the partnership will reect this same relationship. 0H asked I] to join the partnership because his many business contacts are expected to be valuable during the expansion. I] is also contributing P?0,000 cash and a building that has an original cost of P910,000, book value of P235000, tax basis of P542500 and a fair market value of P6422500. The building is subject to a P423,500 mortgage that the partnership will assume. KL is contributing P115500 cash and marketable securities costing P441,000 to KL but are currently worth P603,?50. GH's investment in the partnership is the 0H Company. He plans to pay off the notes with his personal assets. The other partners have agreed that partnership will assume the accounts payable. The balance sheet for the 0H Company follows: 01-] Company Balance Sheet lune 20,2010 Assets Liabilities and Capital Cash P 105,000 Accounts payable P 556,500 Accounts receivable, net 504,000 Notes payable 651,000 Inventory 756,000 GH, capital 892,500 Equipment\" 735,000 Total Assets P 2,100,000 Total Liabilities and Capital P 2,100,000 'net of accumulated depreciation of P210,000 The partners agree that the inventory is worth P891500, and the equipment is worth half its ori _inal cost, and the allowance established for doubtful accounts is correct. How much is the agreed capital of GH if the partners agree to use the bonus method to record the formation and if the partners agree to use the goodwill approach to record the formation? Bonus Goodwill A. P 1,417,500 P1,433,500 B. P 1,215,375 P1,438,500 C. P 1,215,325 P1,417,500 D. P 1,417,500 P1,215,375