Michael. Scottie and Steve. owners of existing businesses, decided to form a new partnership. Followingare the balances of their assets and liabilities and their agreed adjustments: Michael Scottie Steve Cash 890,000 1,500,000 60,000 Accounts Receivable 120,000 358,000 155,000 Allowance for Bad debts 4,500 27,000 9,200 Merchandise Inventory 331,000 420,000 177,000 Prepaid expenses 98,000 125,000 9,500 Land 1.000.000 Equipment 250,000 575,000 100,000 Accumulated depreciation - Equipment 30,000 100,000 15,000 Furniture and Fixtures 143,000 180,000 Accumulated depreciation - Furniture and Fixtures 50,000 90,000 Accounts Payable 96,250 222,000 64,000 Utilities Payable 35,000 109,000 5,000 Mortgage Payable 420,000 Capital account 1,616,250 3,190,000 408,300 Michael's allowance for bad debts is understated by P3500; the Merchandise inventory is overstated by P253000: Ute accumulated depreciation for the equipment is understated by P20,000. Scottie's aliowance for bad debts is overstated by P1000; Merchandise inventory should be valued at P435,000; and the accounts payable is understated by P1B,000. The mortgage payable will be assumed by the partnership. .Steve's utilities payable is understated by P25,000. He will also invest additional cash of P500000. HOW MUCH IS THE TOTAL CAPITAL OF THE NEW PARTNERSHIP? P 5.631.050 P 5,645,050 P 5,145,050 Po,065,050