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Acquisition of the second-hand equipment

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A, B and C are partners with capital balances on December 31, 20x5 of P300,000, P300,000, and P200,000, respectively. Profits are shared equally. C wishes to withdraw and it is agreed that C is top take certain equipment with second-hand value of P50,000 and a note for the balance of Michael's interest. The Equipment are carried on the books at P65,000. Brand new equipment may cost P80,000. Compute for:

1. C's acquisition of the second-hand equipment will result to reduction in capital.

2. The value of the note that will C get from the partnership's liquidation?

Reference no: EM133272746

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