Reference no: EM132641332

As of the year ending December 31,2019, Beyond the Arc incurred losses amounting to P20,000 as there was no revenue during the two-month period and only recorded depreciation amounting to P20,000. On the same date, the partnership admitted Curry, with him investing cash amounting to P500,000 for a 1/3 interest. The partnership is contemplating whether to use the bonus or asset revaluation method in admitting Curry.

Problem 1: If bonus method is to be used in admitting Curry, the bonus will be

Option 1: P233,000 from Curry to old partners

Option 2: P140,000 from the old partners to Curry

Option 3:  P140,000 from Curry to old partners

Option 4:  P300,000 from Curry to old partners

Problem 2: If asset revaluation is to be used in admitting curry, the asset revaluation(impairment should be)

Option 1: P350,000 each to old partners

Option 2: P420,000 to Curry

Option 3: P210,000 to each to old partners

Option 4: P450,000 each to old partners