Question 9 of 33 9 Fontaine and Monroe ore formingportnershi

Question 9 (of 33) 9 Fontaine and Monroe ore formingportnership. Fonteine invests re building that hes merket velue of $368,000, the partnership essumes responsibility for a $134,000 note secured bymortgege on the property. Monroe invests $109,000 in cosh and equipment thet hes a market value of $84,000. For the pertnership, the amounts recorded for total ossets and for total capital account ar Total assets $561,000; total capital $561,000. O Total assets $561,000. total capital $427000 O Total assets $427000 total capital $561000 Total assets $695.000. total capital $695,000 O Total assets $427000 total capitai $427.000 Multiple Choice Type here to search

Solution

Calculate Total Assets and total capital :

Total Assets = Building+Cash+equipment

= 368000+109000+84000

Total Assets = 561000

Total capital Account :

Capital Account = Fontain\' capital+Monroe\'s capital

= (368000-134000)+(109000+84000)

Capital Account = 427000

SO answer is b) Total Assets $561,000, Total Capital $427,000