Collins and Farina Are Forming a Partnership

question 66

Multiple Choice

Collins and Farina are forming a partnership.Collins is investing a building that has a fair market value of $70,000.However,the building is subject to a $36,000 mortgage.Farina is investing $20,000 cash.The amount to be credited to Collins' capital account is:

• A) $70,000.
• B) $34,000.
• C) $56,000.
• D) $44,000.
• E) $60,000.

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Definitions:

Harvest

The process or period of gathering in crops.

Grain

Small, hard, dry seeds, with or without attached hulls or fruit layers, harvested for human or animal consumption, and used across various industries.

Rats

Medium-sized, long-tailed rodents, often considered pests in various human societies due to their ability to transmit diseases.

Bushels

A measure of volume used primarily for agricultural produce, equivalent to approximately 8 gallons in the U.S. system.