1. On July 09, 2013 Lolo wants to retire from KRL Partnership.

p. The statement of financial position for the KRL Partnership

before closing on that date shows the
following:
Cash P 148,000 Liabilities P 90,000
Receivables, net 72,000 Jose capital 200,000
Equipment, net 270,000 Kiko capital 96,000
Goodwill 60,000 Lolo capital 84,000
Income summary 80,000
Total P550,000 Total P550,000

Jomes, kanji and Loli share profts and losses in the ratio of 5:3:2, respectively. The partners agreed to write off the
goodwill and to adjust the equipment to their fair market values of P230,000. Loli is paid P110,000 cash for his total
interest.
Assuming the use of the total goodwill method the total assets of the new partnership after the
retirement of Loli is:

a. P554,000 c. P474,000

b. P490,000 d. P550,000