A and B form a new partnership. A invests P300,000 in cash for his 30% interest in the capital and profits of the business. B contributes cash and building with a fair market value of P600,000. The building is subject to a P40,000 mortgage that the partnership will assume. Compute the amount of cash B should contribute.

A and B form a new partnership. A invests P300,000 in cash for his 30% interest in the capital and profits of the business. B contributes cash and building with a fair market value of P600,000. The building is subject to a P40,000 mortgage that the partnership will assume. Compute the amount of cash B should contribute.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 55P

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