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Three partners who share profits and losses equally are to incorporated their business. The capital accounts show the following:
Jacinto P400,000
Mapa P600,000
Magno P1,000,000.
Problem 1: It is agreed that the three will incorporated their business. Combined, the net assets amount to P2 million which will be revalued at P2.6 million based on current market value. The capital stock of the corporation will have a par value of P100. Upon incorporation, how many shares of stock would the partners receive?
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Production for the current period was assigned a $430,000 standard direct labor cost. What is the actual total direct labor cost for the current period?
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