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.

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Definitions:

Strongest Predictor

A variable or factor that has the highest correlation or impact on determining the outcome of a study or model.

Happiness

A condition of being well that is identified by feelings that vary from satisfaction to profound happiness.

Feel Guilty

The emotional state resulting from the belief that one has violated a moral standard or caused harm to someone.

Apologize

The act of expressing regret or sorrow for having wronged or caused harm.