How much capital should be credited to dan

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Reference no: EM133340949

Problem B Dan and Brad agreed that the following assets are to be contributed in the new partnership:

Dan Brad

Cash P 3,600,000 P 5,400,000

Inventory 2,700,000

Land 1,800,000

Building 5,400,000

Furniture and fixtures 2,700,000

The building is subject to a mortgage loan, already past due, in the amount of P1,800,000. Dan settled the mortgage from his personal funds. The partners agreed that Dan should be credited for this. The partnership agreement calls for division of profit and loss of 1:2 between Dan and Brad. 6. How much capital should be credited to Dan? 7. How much capital should be credited to Brad?

Reference no: EM133340949

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