Miller and Reising Formed a Partnership

question 57

Multiple Choice

Miller and Reising formed a partnership.Miller contributed land valued at $90,000 and a building valued at $115,000.Reising contributed $90,000 cash.In addition,the partnership assumed responsibility for Miller's $85,000 mortgage payable associated with the land and building.What are the balances of the partners' capital accounts after these transactions have been recorded?

• A)Miller: $120,000; Reising: $90,000.
• B)Miller: $205,000; Reising: $90,000.
• C)Miller: $105,000; Reising: $105,000.
• D)Miller: $90,000; Reising: $120,000.
• E)Miller: $90,000; Reising: $205,000.

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