Maxwell and Smart Are Forming a Partnership

question 29

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