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Problem 1: Carlos and her very close associate Liggayu formed a partnership on January 1, 2019 with Carlos contributing P16,000 cash while Liggayu contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2019, Liggayu made additional investments of P1,600 on April 1 and PP1,600 on June 1 and on September 1, he withdrew P4,000. Carlos had no additional investments or withdrawals during the year. The average capital balance at the end of 2019 for Liggayu is
a. 7200
b. 8000
c. 8800
d. 9600
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