Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 4:3:2. Assume that Peter was in a hurry to leave for the family relocation the reason he just demanded for a bargain settlement of P428,000. He also wants to leave a small token to James and John for the many years of friendship, trust, support, and love shared in the partnership. How much is the capital of John after Peter's retirement?
Step by Step Solution
★★★★★
3.43 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Based on the given information Peters capital balance before retirement was P540000 However he demanded a bargain settlement of P428000 which means he ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started