Question
On January 1, Truly, Honest and Integrity are forming a partnership. Truly invests a building with cost of P5,000,000 and accumulated depreciation of P4,000,000.
On January 1, Truly, Honest and Integrity are forming a partnership. Truly invests a building with cost of P5,000,000 and accumulated depreciation of P4,000,000. The building has a fair value of P2,000,000 and an annotated mortgage payable amounting to P500,000 to be assumed by the partnership. Honest, on the other hand, invested 10,000 shares of stocks with par value of P150/share and prevailing quoted price of P300/share. The building invested by Truly was sold for P5,500,000 on January 2. If Integrity wants to have a 20% interest in the new partnership, how much cash should she contribute?
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Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
34th Edition
0135919460, 978-0135919460
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