Question
Partner Peter is retiring in midyear from Apostles Partnership due to his family relocation. Physical distance will prevent him from coping with the daily
Partner Peter is retiring in midyear from Apostles Partnership due to his family relocation. Physical distance will prevent him from coping with the daily rigors of their fashion and beauty consulting services company. After the books have been adjusted for the semi-annual profits, their capital balances are as follows: Peter Capital P540,000; James, Capital P430,000; John, Capital P210,000 Profit sharing is 3:2:1. Assume that Peter demanded P632,000 settlement for his interest because he firmly believed that he has contributed so much to the success of the business. The remaining partners agreed for old time's sake. How much is the share of James in the bonus given to Peter for his retirement? Note: Round off answer to the nearest peso..
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