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The partnership of Carding and Moly was formed on February 28, 20x1. At that date, the following assets were contributed: Carding Moly Cash P35,000

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The partnership of Carding and Moly was formed on February 28, 20x1. At that date, the following assets were contributed: Carding Moly Cash P35,000 P 15,000 Merchandise 45,000 Building 100,000 25,000 Furniture and fixtures The building is subject to a mortgage loan of P30,000 that is to be assumed by the partnership. The partnership agreement provides that Carding and Moly share profits or losses 40:60, respectively. The partnership agreement states that the interest and P/L ratio are the same and no recognition should be given to any intangible assets contributed. What must be (1) the capital credit to Carding and (2) the amount of goodwill recognized upon formation of partnership?

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