What is the value of the building contributed by alex

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Teddy, Bobbie, Alex, and Gabbie organized a partnership called Four Sisters. Their business is engaged in providing wedding services. Teddy and Bobbie contributed cash of P600,000 each. Alex contributed building which she inherited from her father three (3) years ago. For the transfer tax purposes, the value of the building was P900,000. A week before the partnership was formed, several buyers signify their intention of buying the building for P920,000. The building has been subjected to a mortgage with a carrying amount of P200,000, which will be assumed by the partnership. Gabbie, being an event planner, contributed her skills and knowledge to the partnership. The partners agreed that Gabbie would be given a salary of P15,000. She will also receive 20% of the remaining profits.

Problem 1: What is the value of the building contributed by Alex? Justify your answer in no more than three (3) sentences.

Problem 2: Give the entry to be made at the date of formation

Reference no: EM132822989

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