Question

Badger and Fox are forming a partnership. Badger invests a building that has a market value of $352,000; the partnership assumes responsibility for a $126,000 note secured by a mortgage on the property. Fox invests $101,000 in cash and equipment that has a market value of $76,000. For the partnership, the amounts recorded for the building and for Badger's Capital account are:

Answer 1

Building, $352,000; Badger's Capital $226,000.

Step-by-step explanation:

Calculation for the amounts recorded for the building and for Badger's Capital account are:

Based on the information given we were told that the building has a market value of the amount of $352,000 which means that the amounts recorded for the building will be $352,000

Badger's Capital =$352,000-$126,000

Badger's Capital =$226,000

Therefore the building and for Badger's Capital account are:

Building, $352,000; Badger's Capital $226,000