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 and a book value of $65,000.However,the building carries a $56,000 mortgage that will be assumed by the partnership.Farina is investing $20,000 cash.Total capital in the partnership will be:

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