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 Fontaine's Capital account and for Monroe's Capital account are:

A) Fontaine,Capital $175;Monroe,Capital $45,000.
B) Fontaine,Capital $0;Monroe,Capital $100,000.
C) Fontaine,Capital $250,000;Monroe,Capital $100,000.
D) Fontaine,Capital $250,000;Monroe,Capital $155,000.
E) Fontaine,Capital $175,000;Monroe,Capital $155,000.