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Problem 1: Partners Lorie and Lisa each have a P450,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P150,000, non-cash assets equal P1,500,000, and liabilities equal P750,000. If the non-cash assets are sold for P1,000,000, then Lisa's capital account will be
a. Increase of P500,000b. Decrease of P250,000c. Decrease of P200,000d. Increase of P400,000
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