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Question 1: On December 1, 2020, Angkit invited Mulong to join him in his business. Mulong agreed that Angkit will adjust the accumulated depreciation of his Equipment account to a certain amount, and will recognize additional accrued expenses of P10,000. After that, Mulong is to invest additional pieces of equipment to make his interest equal to 45%. If the capital balances of Angkit before and after adjustments were P139,000 and P121,000 respectively, what is the effect in the carrying value of the equipment as a result of the admission of Mulong?
Group of answer choices
a. (P8,000)
b. P99,000
c. P91,000
d. (P81,000)
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