Maxwell and Smart Are Forming a Partnership

Multiple Choice

Maxwell and Smart are forming a partnership.Maxwell is investing a building that has a market value of $180,000.However,the building carries a $56,000 mortgage that will be assumed by the partnership.Smart is investing $120,000 cash.The balance of Maxwell's Capital account will be:

A) $180,000.
B) $124,000.
C) $56,000.
D) $64,000.
E) $60,000.