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Question - On January 1, 2021, Levi contributed P33,750 and Hanji contributed P56,250 to form a partnership and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,240; Levi withdrew P4,840 and Hanji P1,400. On January 1, 2022, they agreed to admit Erwin into the partnership. He was to receive a three-eighth interest in the capital and profits upon payment of P48,640 to Levi and Hanji, whose capital accounts were to be reduced by transfers to Erwin's capital account of amounts sufficient to bring them back to their original capital ratio. How should the P48,640 paid by Erwin be divided between Levi and Hanji?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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