Fontaine and Monroe Are Forming a Partnership

Multiple Choice

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000.
-For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:

A) Building $250,000; Fontaine, Capital $75,000.
B) Building $250,000; Fontaine, Capital $250,000.
C) Building $250,000; Fontaine, Capital $175,000.
D) Building $175,000; Fontaine, Capital $175,000.
E) Building $175,000; Fontaine, Capital $75,000.