The Partnership of Abel and Caine Was Formed on February

question 41

Multiple Choice

The partnership of Abel and Caine was formed on February 28, 2014.At that date the following assets were invested: $$\begin{array} { l c c } & \text { Abel } & \text { Caine } \\\text { Cash } & \$ 120,000 & \$ 200,000 \\\text { Merchandise } & - 0 - & 320,000 \\\text { Building } & - 0 - & 840,000 \\\text { Furniture and equipment } & 200,000 & - 0 -\end{array}$$ The building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership.The partnership agreement provides that Abel and Caine share profits or losses 30% and 70%, respectively.Caine's capital account at February 28, 2014, should be

• A)$1,080,000.
• B)$1,360,000.
• C)$1,176,000.
• D)$952,000.

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