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Problem 1: A,B and C decided to form ABC partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. A date after the partnership formation, the equipment was sold for P600,000. B will contribute a land and building with carrying amount of P2,400,000 and fair value of P3,000,000. The land and building are subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C will contribute sufficient cash to the partnership. What is the cash to be contributed by C in the ABC Partnership?
a. 1,200,000 b. 1,000,000 c. 1,400,000 d.1,600,000
Calculate the cost of goods manufactured using the following information: General and administrative expenses 86,900
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