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Question 1: Peter and Ronald are partners. They have shared profits and losses 65/35 for a number of years. Peter has indicated that he is going to reduce his involvement in the partnership so the profit and loss ratio is being modified to 45/55. At the date of the change in the profit and loss ratio, the partnership own vacant land with a market value of P300,000 and a book value of P100,000. Peter and Ronald compile a list of assets with market and book value differences. Two years after the change in the profit and loss ratios, the land is sold for P450,000. How much of the gain is allocated to Peter?
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