Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer 7,8 thanks C Daisy wishes to purchase one-fourth interest in the capital and profits in the partnership of Mickey, Minnie, and Donald. The

image text in transcribed

please answer 7,8 thanks

C Daisy wishes to purchase one-fourth interest in the capital and profits in the partnership of Mickey, Minnie, and Donald. The three partners agreed to sell one-fourth of their respective capital and profit and loss interests for a total payment of P1,600,000. The capital accounts and the respective percentage interests in the profits and losses immediately before the sale to Daisy follow: Capital Share in Profits and losses Mickey P3,200,000 40% Minnie 1,600,000 30% Donala 800,000 30% All assets and liabilities of the partnership are fairly valued. 7. What should be the capital balances of Mickey, Minnie, Donald and Daisy, immediately after Daisy's admission? 8. What is the new profit and loss ratio between Mickey, Minnie, Daisy, and Donald, respectively

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions