Forman and Berry Are Forming a Partnership

Multiple Choice

Forman and Berry are forming a partnership. Forman will invest a building that currently is being used by another business owned by Forman. The building has a market value of $80,000. Also, the partnership will assume responsibility for a $20,000 note secured by a mortgage on that building. Berry will invest $50,000 cash. For the partnership, the amounts to be recorded for the building and for Forman's Capital account are:

A) Building, $80,000 and Forman, Capital, $60,000.
B) Building, $60,000 and Forman, Capital, $60,000.
C) Building, $60,000 and Forman, Capital, $50,000.
D) Building, $60,000 and Forman, Capital, $80,000.
E) Building, $80,000 and Forman, Capital, $80,000.