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Problem 1: During the liquidation of Gym, Hob and Ing Partnership, Partner Hob withdrew equipment with a cost to the partnership of P18,000, accumulated depreciation of P8,000, and a current fair value of P13,000. The partners shared net income and losses equally. The net debit of Hob's capital account (including any gain or loss on disposal of the equipment), assuming the noncash asset may be distributed safely to Hob, is:
A. P10,000
B. P12,000
C. P13,000
D. P18,000
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