Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $330,000; the partnership assumes responsibility for a $115,000 note secured by a mortgage on the property. Monroe invests $90,000 in cash and equipment that has a market value of $65,000. For the partnership, the amounts recorded for total assets and for total capital account are: Multiple Choice Total assets $485,000; total capital $370,000. Total assets $370,000; total capital $370,000. Total assets $485,000; total capital $485,000. Total assets $370,000; total capital $485,000. Total assets $600,000; total capital $600,000.

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $330,000; the partnership assumes responsibility for a $115,000 note secured by a mortgage on the property. Monroe invests $90,000 in cash and equipment that has a market value of $65,000. For the partnership, the amounts recorded for total assets and for total capital account are: Multiple Choice Total assets $485,000; total capital $370,000. Total assets $370,000; total capital $370,000. Total assets $485,000; total capital $485,000. Total assets $370,000; total capital $485,000. Total assets $600,000; total capital $600,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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