PROBLEM 1: TRUE OR FALSE 1. The accounting for the assets and liabilities of a partnership business is different from that of a sole proprietorship or a corporation 2 A partnership is relatively easy to form but also easy to dissolve. 3. Mr. A contributed land with historical cost of PIM and fair value of P2M to a partnership business. Mr. A's contribution shall be valued at PIM in the partnership books 4. A bonus given to a partner is treated as a reduction to the capital account(s) of the other partner(s). 5. Ms. 8 contributed equipment with carrying amount of P100 and fair value of P200 to a partnership. No bonus is given to any partner. In the partnership's books, equipment is debited for 1200 but B's capital account is credited for P100 6. Mr. C contributed land with fair value of PIM to a partnership. The land has an unpaid mortgage of P.2M which the partnership agreed to assume. The valuation of Mr. Csnet contribution is P1.2M. Fact pattern Mr. Dand Ms. E formed a partnership. D contributed 1200, while E contributed P100. The partners' respective interests in the partnership are 60% and 40%. The initial credits to the partners capital accounts are to be adjusted using the bonus method to reflect the partners' respective interests. 7. The balance of capital account atter the formation is Piso & The bonus given to E. Tact pattern Piw and he agreed to form a partnership Piw contributed cash of 7200 while Pie will be contributing her expertise. The partnership agreement stipulates that i'w and he shall have equal interests in Fact pattern Mr. D and Ms. E formed a partnership. D contributed 7200, while E contributed P100. The partners' respective interests in the partnership are 60% and 40%. The initial credits to the partners capital accounts are to be adjusted using the bonus method to reflect the partners' respective interests. 7. The balance of D's capital account after the formation is P180. The bonus given to Eis Fact putem Piw and the agreed to form a partnership. Piw contributed cash of 7200 while Pie will be contributing her expertise. The partnership agreement stipulates that Piw and Pie shall have equal interests in YOT FOR SALE! All rious belongs to respective or 16 Chapyle | both the initial capital of the partnership and in subsequent partnership profits and losses. 9. The cash contribution of Piw shall be debited for 1200 but the net credit to Piw's capital account shall be P100 10. Immediately after partnership formation, the balance of Ple's capital account is zero