Income Taxation 5Th Edition (By: Valencia & Roxas) Suggested Answers

INCOME TAXATION 5TH Edition (BY: VALENCIA & ROXAS)
SUGGESTED ANSWERS
Chapter 3: Concept of Income
CHAPTTotal agreed capital (75,000/20%) P 375,000

Total contributed capital (280,000+75,000) ( 355,000)
Goodwill to old partners, 5:3:2 P 20,000
 Equalize *3-19
Capital balances before
admission P360,000 P225,000 P135,000 – P720,000
Capital transfer
to WW (1/6) ( 60,000) ( 37,500) ( 22,500) _120,000 –
Balances P300,000 P187,500 P112,500 P120,000 P720,000
Equalization of capital ( 100,000) 12,500 87,500 – –
Balances P200,000 P200,000 P200,000 P120,000 P720,000
Net profit, equally 3,150 3,150 3,150 3,150 12,600
Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)
WWs Investment P201,650 P201,150 P201,650 P121,150 P725,600
Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

WW's interest 1/3
Agreed capital of WW P302,225
Contributed capital (see above) _121,150
 Goodwill to new partner
*3-15
Total agreed capital (P41,600/2/3) P 62,400

Total contributed capital (P23,000+18,600+16,000) ( 57,600)
Goodwill to new partner, Ang P 4,800
LIM ONG ANG

Capital balances before admission P23,000 P 18,600 –
Investment by Ang – – 16,000
Goodwill to August – – 4,800
Capital balances after admission P23,000 P 18,600 P20,800
 Bonus Method
AQUINO LOCSIN DAVID HIZON

Capital balances before admission P252,000 P126,000 P42,000 –
Purchase by Hizon (20%) ( 50,400) ( 25,200) ( 8,400) _84,000
Capital balances after admission P201,600 P100,800 P33,600 P 84,000
 Bonus Method

SUGGESTED ANSWERS
Total agreed capital (75,000/20%) P 375,000

 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000
Capital transfer
to WW (1/6) ( 60,000) ( 37,500) ( 22,500) _120,000 –
Balances P300,000 P187,500 P112,500 P120,000 P720,000
Balances P200,000 P200,000 P200,000 P120,000 P720,000
Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

WW's interest 1/3
*3-15

LIM ONG ANG

 Bonus Method

 Bonus Method

SUGGESTED ANSWERS

 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000
Capital transfer
to WW (1/6) ( 60,000) ( 37,500) ( 22,500) _120,000 –
Balances P300,000 P187,500 P112,500 P120,000 P720,000
Balances P200,000 P200,000 P200,000 P120,000 P720,000
Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

WW's interest 1/3
*3-15

LIM ONG ANG

 Bonus Method

 Bonus Method

SUGGESTED ANSWERS

ER 3
P 24,380 P 50,860 P 75,240
( 5,570) ( 13,240) (18,810) (1/4)
Capital balances after admission 1:2 P 18,810 P 37,620 P 56,430
Capital transfer P 5,570 P 13,240 P18,810

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000
 Comprehensive bonus and goodwill

 3-16: a
ANG BENG CHING DONG TOTAL

admission P600,000 P 400,000 P 300,000 – P1,300,000
Admission by Dong:
By Purchase (1/2) ( 300,000) – – 300,000 –
By Investment – – – _300,000 300,000
Goodwill and Bonus P300,000 P 400,000 P 300,000 P600,000 P1,600,000
Goodwill to Old Partners (sch. 1) 150,000 150,000 100,000 – 400,000
Bonus to Old Partners (sch. 1) 37,500 37,500 25,000 ( 100,000) –
Capital balances after
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000
Schedule 1: CC AC Inc. (Dec.)

Old Partners P 1,000,000 P1,500,000 P500,000
New Partner 600,000 (25%) 500,000 ( 100,000) Bonus
Total P 1,600,000 P2,000,000 P400,000 GW
 Double Goodwill double admission

*3-17
admission of Alma P150,000 P 50,000 – – P 200,000
Admission of Alma:
Investment – – 80,000 – 80,000
Goodwill to old partner,
70:30 (sch. 1) 28,000 12,000 – – 40,000
admission of Lorna P178,000 P 62,000 P 80,000 – P 320,000
Admission of Lorna:
Goodwill Written off, 5:3:2 (P 20,000) (P 12,000) ( P8,000) – ( P40,000)
Investment – – – 75,000 75,000
Goodwill to old partners,
5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000
Schedule 1
SUGGESTED ANSWERS
Total capital contributed (200,000+80,000) ( 280,000)

Goodwill to old partners, 70:30 P40,000
Schedule 2:
 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000
Capital transfer
to WW (1/6) ( 60,000) ( 37,500) ( 22,500) _120,000 –
Balances P300,000 P187,500 P112,500 P120,000 P720,000
Balances P200,000 P200,000 P200,000 P120,000 P720,000
Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

WW's interest 1/3
*3-15

LIM ONG ANG

 Bonus Method

Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)


SUGGESTED ANSWERS
1/3
WW's interest
 will to new partner
*3-15

LIM ONG ANG

 Bonus Method

 Cash Distribution
AQUINO LOCSIN DAVID TOTAL

Capital transferred P 50,400 P P 8,400 P 84,000
25,200 Excess divided using profit and loss ratio 3,600 600 6,000
1,800
Cash distribution P 54,000 P 27,000 P 9,000 P 90,000
*3-7Capital balances beginning P 24,000 P 48,000 P 72,000

Net profit, 1:2 5,430 10,860 16,290
Drawings ( 5,050) ( 8,000) ( 13,050)
Capital balances before admission P 24,380 P 50,860 P 75,240
Capital transfer (squeeze) ( 5,570) ( 13,240) (18,810) (1/4)

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000
Comprehensive bonus and goodwill

SUGGESTED ANSWERS
Net profit, 1:2 5,430 10,860 16,290

Drawings ( 5,050) ( 8,000) ( 13,050)

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000

 3-16: a

admission P600,000 P 400,000 P 300,000 – P1,300,000
Admission by Dong:
By Purchase (1/2) ( 300,000) – – 300,000 –
By Investment – – – _300,000 300,000
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000

Old Partners P 1,000,000 P1,500,000 P500,000
Total P 1,600,000 P2,000,000 P400,000 GW

*3-17
Admission of Alma:
Investment – – 80,000 – 80,000
70:30 (sch. 1) 28,000 12,000 – – 40,000
Admission of Lorna:
Investment – – – 75,000 75,000
5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000
Schedule 1
SUGGESTED ANSWERS
Schedule 2:
 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000

 3-16: a

admission P600,000 P 400,000 P 300,000 – P1,300,000
Admission by Dong:
By Purchase (1/2) ( 300,000) – – 300,000 –
By Investment – – – _300,000 300,000
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000

Old Partners P 1,000,000 P1,500,000 P500,000
Total P 1,600,000 P2,000,000 P400,000 GW

*3-17
Admission of Alma:
Investment – – 80,000 – 80,000
70:30 (sch. 1) 28,000 12,000 – – 40,000
Admission of Lorna:
Investment – – – 75,000 75,000
5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
SUGGESTED ANSWERS
admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000
Schedule 1
Schedule 2:
 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000
Capital transfer
to WW (1/6) ( 60,000) ( 37,500) ( 22,500) _120,000 –
Balances P300,000 P187,500 P112,500 P120,000 P720,000
Balances P200,000 P200,000 P200,000 P120,000 P720,000
Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

WW's interest 1/3
*3-15

LIM ONG ANG

 Bonus Method

Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

SUGGESTED ANSWERS

WW's interest 1/3
 will to new partner
*3-15

LIM ONG ANG

 Bonus Method

 Cash Distribution
AQUINO LOCSIN DAVID TOTAL

Capital transferred P 50,400 P P 8,400 P 84,000
25,200 Excess divided using profit and loss ratio 3,600 600 6,000
1,800
Cash distribution P 54,000 P 27,000 P 9,000 P 90,000

Net profit, 1:2 5,430 10,860 16,290
Drawings ( 5,050) ( 8,000) ( 13,050)

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000
SUGGESTED ANSWERS
Comprehensive bonus and goodwill

Net profit, 1:2 5,430 10,860 16,290
Drawings ( 5,050) ( 8,000) ( 13,050)

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000

 3-16: a

admission P600,000 P 400,000 P 300,000 – P1,300,000
Admission by Dong:
By Purchase (1/2) ( 300,000) – – 300,000 –
By Investment – – – _300,000 300,000
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000

Old Partners P 1,000,000 P1,500,000 P500,000
Total P 1,600,000 P2,000,000 P400,000 GW

*3-17
Admission of Alma:
Investment – – 80,000 – 80,000
70:30 (sch. 1) 28,000 12,000 – – 40,000
Admission of Lorna:
Investment – – – 75,000 75,000
5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000
Schedule 1
SUGGESTED ANSWERS

Schedule 2:
 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000

Excess, 1:2 3,730 7,460 _11,190
Cash P 9,300 P 20,700 P30,000

 3-16: a

admission P600,000 P 400,000 P 300,000 – P1,300,000
Admission by Dong:
By Purchase (1/2) ( 300,000) – – 300,000 –
By Investment – – – _300,000 300,000
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000

Old Partners P 1,000,000 P1,500,000 P500,000
Total P 1,600,000 P2,000,000 P400,000 GW

*3-17
Admission of Alma:
Investment – – 80,000 – 80,000
70:30 (sch. 1) 28,000 12,000 – – 40,000
Admission of Lorna:
Investment – – – 75,000 75,000
SUGGESTED ANSWERS

5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
admission P487,500 P 587,500 P 425,000 P500,000 P2,000,000

Old Partners P 1,000,000 P1,500,000 P500,000
Total P 1,600,000 P2,000,000 P400,000 GW

*3-17
Admission of Alma:
Investment – – 80,000 – 80,000
70:30 (sch. 1) 28,000 12,000 – – 40,000
Admission of Lorna:
Investment – – – 75,000 75,000
5:3:2 (sch. 2) 10,000 6,000 4,000 – 20,000
admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000
Schedule 1
Schedule 2:
 Equalize *3-19
admission P360,000 P225,000 P135,000 – P720,000
CONCEPT OF INCOME
Problem 3 – 1 TRUE OR FALSE
1. True
2. False – All properties of a delinquent taxpayer may be subject to tax lien.
3. True
4. False – Seizure
5. False – Forfeiture
6. True
7. False – Criminal violations already filed in court are not subject to compromise.
Collection of taxes is not a criminal violation.
8. True
SUGGESTED ANSWERS

1. True
2. False – Without letter of
authority, the taxpayer
could refuse access to
his books.
3. False – Civil action
could also be judiciary
pursued.
4. True
5. False – the appeal must
first be made to Court
of Tax Appeals.
6. False – It could also be
done if no tax return is
filed.
7. False – Ten years
prescription period
starts at date of
discovery that tax
return was not filed.
8. False – It should be 5
years.
9. False – Levy could also
be done before or
simultaneous with
distraint.
10. False – Residual value
should be returned to
taxpayer.
11. True
12. False – It is also
applicable to
importation.
13. True
Problem 2 – 5 Problem 2 – 6
1. B 1. D
2. A 2. A
3. B 3. A
4. D 4. A
5. A 5. C
6. C 6. C
7. C 7. D
8. D 8. B
9. B 9. C
10. B 10. C
11. D
12. C
13. B
Problem 2 – 7
Situation 1 – No need to appeal. The prescribed period of filing for the refund is already
expired. The filing of refund should have been made within two years after the payment of tax or
penalty. It was filed within 2 years, one month, and 5 days after the date of erroneous payment,
hence, not appealable anymore.
Situation 2 – May 5, 2010. The filing of refund was appropriately made within the 2 year
prescribed period. The denial was received on April 5, 2010. The filing of appeal to CTA should
be made within 30 days from the receipt of denial from the BIR.
Situation 3 – August 2, 2014. The date of grant for refund was received on August 1, 2009.
The refund check (dated July 15, 2009) should be encashed within 5 years from the date the
grant for refund was received (August 1, 2009). The check should be encashed from August 1,
2009 to August 1, 2014. It will be forfeited on August 2, 2014.
SUGGESTED ANSWERS
The refund check (dated July 30, 2009) should be utilized within 5 years from the date the grant
for refund was received (August 21, 2009). The tax credit certificate should be utilized from
August 21, 2009 to August 21, 2014. It will be forfeited on August 22, 2014, unless otherwise
revalidated.
Situation 5 – August 20, 2009. If the BIR has no response after the submission of supporting
documents to serve as evidence for the protest, the last day to appeal to the CTA should be
made within 30 days from the lapse of the 180 day period from the submission of the
supporting documents.
Computation of days:
After January 22, 2009 Days
January 9
February 28
March 31
April 30
May 31
June 30
July 21
Total number of days as of July 21 180
Plus 30 days after the 180 days
July 10
August 20
Total day on August 20 30
Situation 6 – May 4, 2009. The last day to appeal to the CTA should be made within 30 days
from the receipt of the denial of the BIR. The 30 days is determined as follows:
Days
First denial of the BIR – March 22, 2009
to 2nd request for reconsideration – March 30, 2009 8
2 denial of the BIR – April 12, 2009
nd
to May 4, 2009 to complete the 30 day period 22

Total days as of May 4, 2009 30
Situation 7 – June 25, 2009. The appeal to CA should be made within 15 days from date of
unfavorable decision from CTA was received (June 10 plus 15 days).
9. Situation 9 – July 10, 2009. The appeal to SC should be made within True
11. True
14. True
16. True

14. True
his books.
pursued.
17. True
of Tax Appeals.
filed.
prescription period
SUGGESTED ANSWERS
starts at date of
discovery that tax
years.
be done before or
simultaneous with
distraint.
taxpayer.
24. True
applicable to
importation.
26. True
1. B 1. D
2. A 2. A
3. B 3. A
4. D 4. A
5. A 5. C
6. C 6. C
7. C 7. D
8. D 8. B
9. B 9. C
10. B 10. C
11. D
12. C
13. B
Problem 2 – 7
revalidated.
January 9
February 28
March 31
April 30
May 31
June 30
SUGGESTED ANSWERS
July 21
July 10
August 20
Days
2 denial of the BIR – April 12, 2009
nd

19. True
22. True
24. True

27. True
his books.
pursued.
30. True
of Tax Appeals.
filed.
prescription period
starts at date of
discovery that tax
years.
be done before or
simultaneous with
distraint.
taxpayer.
37. True
applicable to
importation.
39. True
SUGGESTED ANSWERS
1. B 1. D
2. A 2. A
3. B 3. A
4. D 4. A
5. A 5. C
6. C 6. C
7. C 7. D
8. D 8. B
9. B 9. C
10. B 10. C
11. D
12. C
13. B
Problem 2 – 7
revalidated.
January 9
February 28
March 31
April 30
May 31
June 30
July 21
July 10
August 20
Days
2nd denial of the BIR – April 12, 2009
SUGGESTED ANSWERS
27. True
30. True
32. True

40. True
his books.
pursued.
43. True
of Tax Appeals.
filed.
prescription period
starts at date of
discovery that tax
years.
be done before or
simultaneous with
distraint.
taxpayer.
50. True
Problem 3 – 6
B
Increase in total assets P 250,000
Decrease in total liabilities 160,000
Drawings 20,000
Additional investments ( 50,000)
Total income P 380,000
Problem 3 – 7 D
Return of Capital Return on Capital
Time deposit balance P250,000 P30,000
Problem 3 – 8 C
Year 1 Year 2 Year 3
Sales 0 0 P1,800,000
Cost of sale 0 0 ( 1,000,000)
Disposal cost 0 0 ( 50,000)
Income for each year 0 0 P 750,000
Problem 3 – 9 A
Taxable Income Nontaxable
Income
Salary (P260,000/13) x 12 P240,000
SUGGESTED ANSWERS
Raffle winnings 70,000

13th month pay (P260,000/13) x 1 P 20,000
Lotto winnings . 500,000
P310,000 P520,000
Problem 3 – 10 D
Within: Taxable Income
Compensation income P180,000
Income from grocery store 50,000
Outside:
Compensation income 120,000
Lotto winnings 100,000
Total income taxable in the Philippines P450,000
Note: Lotto winnings earned outside the Philippines by a resident Filipino citizen are taxable in
the Philippines.
Problem 3 – 11 C
Subject to ITR Subject to Final Tax
Consultancy fee P 80,000
Salary 300,000
Prizes in raffle ticket P 20,000
Gain on sale of principal residence . 400,000
Totals P380,000 P420,000
Problem 3 – 12 D
Salary for the first 4 months (P12,000 x 4) P 48,000
Remaining months (P15,000 x 8) 120,000
Gross compensation income P168,000
Problem 3 – 13 B
Reportable income is the market value of the car received P120,000
Problem 3 – 14 A
Market value of the service received P6,000
Problem 3 – 15 C
Face value of the non-interest bearing note P30,000
Multiplied by the present value factor of 10% annuity 0.909
Compensation income – present value of the note P27,270
Note: Upon receipt of the note, no interest income yet is to be reported.
Problem 3 – 16 A
Compensation income P50,000
Interest income (P50,000 x 12% x 6/12) P3,000
Problem 3 – 17 B
Collections during the year P490,000
Expenses actually incurred (150,000)
Net income before personal exemption – cash basis P340,000
Problem 3 – 18 A
Gross income (P1,000,000 – P600,000) P400,000
Actual operating expenses (P200,000 x 80%) (160,000)
Net income before other income P240,000
Add: Gain from sale of old furniture 20,000
Taxable income P260,000
Problem 3 – 19
1. A
Reportable income 2006 - casual sale (P12,000 – P3,000) P9,000
The sale is considered cash sales because the 2006 initial payments (P1,000 + P1,000 + 2,000)
exceeds 25% of the selling price; P4,000/P12,000 = 33%
2. B
SUGGESTED ANSWERS
Reportable income 2006 – regular sale (P9,000 x P4,000/P12,000) P3,000
Since the personal property is sold in regular basis, installment reporting of income is allowed.
Problem 3 – 20
1. P37,500 = Not in the choices
Net income (P2,000,000 – P1,400,000 – P100,000) P500,000
Income tax (P500,000 x 5/20) x 30% P 37,500
2. B
Income tax (P2,000,000 x 6%) P120,000
Problem 3 – 21 B
Total revenue P1,000,000
Cost of sale ( 500,000)
Income to be reported P 500,000
Problem 3 – 22 D
Contract price P 1,000,000
Less: Cost (P90,000/20%) 450,000
Gross profit P 550,000
Multiplied by percent of completion 20%
Reportable income under percent of completion P 110,000
Problem 3 – 23 D
Contract price P1,200,000
Less: Total costs (P432,000 + P184,250 + P103,750) 720,000
Total profit P 480,000
Less: Previous years’ reported income:
Accomplished contract price for 2008 and 2009 (P1,200,000 x P1,020,000
85%)
Previous years’ actual costs:
2008 ( 432,000)
2009 ( 184,250) 403,750
Percent of completion – 2010 Reportable income P 76,250
Problem 3 – 24 A
Year 3 sales P 500,000
Less: Cost incurred as of year 3:
Year 1 P 100,000
Year 2 200,000
Year 3 50,000 350,000
Year 3 – reportable income P 150,000
Problem 3 – 25 C
Harvested crops sold P 2,000,000
Less: Total direct costs:
Year 1 P 300,000
Year 2 100,000
Year 3 100,000
Year 4 100,000
Year 5 400,000 1,000,000
Reportable income – year 5 P 1,000,000
Problem 3 – 26
Year 1 Year 2
Total harvest for the year
at selling price P50,000 P100,000
SUGGESTED ANSWERS
Cash Accrual Cash Accrual

Harvests sold:
(80 cavans x P500) P40,000 P40,000
(190 cavans x P500) P95,000 P95,000
Ending inventory:
(20 cavans x P500) 10,000
(30 cavans x P500) 15,000
Beginning inventory:
(20 cavans x P500) . . . ( 10,000)
Gross income for the year P40,000 P50,000 P95,000 P100,000
Problem 3 – 27
1. Cash Method Farming Trading Rent Total
Revenue P 50,000 P150,000 P100,000
Equipment sold 25,000
Costs:
Cost of products purchased ( 90,000)
Carrying value of farm . ( 25,000) .
equipment
Gross income P 50,000 P 60,000 P100,000 P210,000
2. Accrual Method Farming Trading Rent Total

Revenue P 50,000 P150,000 P100,000
Equipment sold 25,000
Inventory, ending 9,000
Inventory, beginning ( 6,000)
Costs:
Cost of products purchased ( 90,000)
Carrying value of farm . ( 25,000) .
equipment
Gross income P 53,000 P 60,000 P100,000 P213,000

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INCOME TAXATION 5TH Edition (BY: VALENCIA & ROXAS)

CHAPTTotal agreed capital (75,000/20%) P 375,000

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

AQUINO LOCSIN DAVID HIZON

Total agreed capital (75,000/20%) P 375,000

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

AQUINO LOCSIN DAVID HIZON

Capital balances after admission P201,600 P100,800 P33,600 P 84,000

Total agreed capital (75,000/20%) P 375,000

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

AQUINO LOCSIN DAVID HIZON

Purchase by Hizon (20%) ( 50,400) ( 25,200) ( 8,400) _84,000

Capital transfer P 5,570 P 13,240 P18,810

 Comprehensive bonus and goodwill

ANG BENG CHING DONG TOTAL

Schedule 1: CC AC Inc. (Dec.)

 Double Goodwill double admission

Total capital contributed (200,000+80,000) ( 280,000)

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

AQUINO LOCSIN DAVID TOTAL

*3-7Capital balances beginning P 24,000 P 48,000 P 72,000

Capital transfer P 5,570 P 13,240 P18,810

Comprehensive bonus and goodwill

Net profit, 1:2 5,430 10,860 16,290

Capital transfer P 5,570 P 13,240 P18,810

 Comprehensive bonus and goodwill

ANG BENG CHING DONG TOTAL

Schedule 1: CC AC Inc. (Dec.)

 Double Goodwill double admission

Capital transfer P 5,570 P 13,240 P18,810

 Comprehensive bonus and goodwill

ANG BENG CHING DONG TOTAL

Schedule 1: CC AC Inc. (Dec.)

 Double Goodwill double admission

admission P168,000 P 56,000 P 76,000 P 75,000 P 375,000

Total agreed capital (201,650+201,150+201,650)/2/3 P906,675

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

Drawings (2 months) _( 1,500) _( 2,000) _( 1,500) _( 2,000) _( 7,000)

Capital balances before

Total agreed capital (P41,600/2/3) P 62,400

LIM ONG ANG

AQUINO LOCSIN DAVID HIZON

AQUINO LOCSIN DAVID TOTAL

*3-7Capital balances beginning P 24,000 P 48,000 P 72,000