Badger and Fox Are Forming a Partnership

question 26

Multiple Choice

Badger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000; the partnership assumes responsibility for a $125,000 note secured by a mortgage on the property. Fox invests $100,000 in cash and equipment that has a market value of $75,000. For the partnership, the amounts recorded for Badger's Capital account and for Fox's Capital account are:

• A) Badger, Capital $350,000; Fox, Capital $175,000.
• B) Badger, Capital $225,000; Fox, Capital $100,000.
• C) Badger, Capital $225,000; Fox, Capital $75,000.
• D) Badger, Capital $350,000; Fox, Capital $100,000.
• E) Badger, Capital $225,000; Fox, Capital $175,000.

---

Definitions:

High School Education

A secondary level of formal schooling that follows primary education, typically including grades 9 or 10 through 12, and culminating in a diploma.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of cases that fall within a particular category.

Statistic

A characteristic or measure obtained from a sample of data to estimate a population parameter.

Sampling Distribution

The likelihood distribution of a statistic, achieved by drawing numerous samples from a certain population.