Question

building that has a market value of $366,000; the partnership assumes responsibility for a $133,000 note secured by a mortgage on the property. Monroe invests $108,000 in cash and equipment that has a market value of $83,000. For the partnership, the amounts recorded for Fontaine's Capital account and for Monroe's Capital account are:\

Answer 1

• Fontaine - $233,000
• Monroe - $191,000

Step-by-step explanation:

Fontaine invested a building that had a value of $366,000 but the partnership assumes a $133,000 note secured by a mortgage on the property. This therefore reduces Fontaine's contribution;

= 366,000 - 133,000

= $233,000

Monroe contributed both cash and equipment so that would go to Monroe's capital account as their capital contribution;

= 108,000 + 83,000

= $191,000