On June 1, 2018, May and Nora formed a partnership. May is to invest assets at fair values. She is to transfer her liabilities and is to contribute sufficient cash to bring her total capital to P210,000 which is 70% of the capital of the partnership. Details regarding the book values of May business assets and liabilities and their corresponding fair values are: Book Values Fair Values Accounts Receivable - net P 53,800 P 53,000 Inventory 98,400 107,000 Equipment 25,800 34,000 Notes Payable 56,000 56,000 Nora Agrees to invest cash of P42,000 and merchandise valued at current market value price. 5. What is the value of the merchandise to be invested by Nora? a. P48,000 b. P84,000 c. P42,000 d.P38,000 6. What is the amount of cash to be invested by May? a. P72,000 b. P62,000 c. P26,000 d. P65,000