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Question - Juan, Pedro and Pablo are partners in a business, sharing profits on a ratio of 4:4:2. Daniel was admitted into the partnership for a net interest of 40%. The old partners will participate based on the original ratio. In 2022, the partnership reported an income of P 200,000. However, during audit, omissions were discovered:
2021: Unrecorded prepaid expense - P10,000; Unrecorded unearned income - P 25,000.
2022: Unrecorded accrued expenses - P 30,000; Unrecorded accrued income - P 5,000; Unrecorded prepaid expense - P 15,0000.
Income tax rate is 40%. How much is the adjusted income? How much income will be distributed to Pablo?
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