Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership

Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership. The current capital balances are: Wally, capital, P50,000; Willie, capital, P65,000; and Watson, capital, P100,000. Prior to the withdrawal of Wally, the partners agree to revalue some of the partnership assets. Inventory with a cost of P120,000 has a current market value of P150,000; land with a cost of P50,000 has a current market value of P125,000. Wally, Willie, and Watson share net income and ‘losses in a 3:3:4 ratio. Willie and Watson will share net income in a 3:4 ratio.2. What is the balance in Wally’s capital account after revaluing the assets? a. P81,500 b. P18,500 C. P92,000 d. P8,0003. What is total capital for the partnership after revaluing the assets? a. P215,000 b.P320,000 C. P110,000 d. cannot be determined using the given information