Collins and Farina Are Forming a Partnership

Multiple Choice

Collins and Farina are forming a partnership. Collins is investing a building that has a market value of $80,000. However, the building carries a $56,000 mortgage that will be assumed by the partnership. Farina is investing $20,000 cash. The balance of Collins' Capital account will be:

A) $80,000.
B) $24,000.
C) $56,000.
D) $44,000.
E) $60,000.