Question

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $334,000; the partnership assumes responsibility for a $117,000 note secured by a mortgage on the property. Monroe invests $92,000 in cash and equipment that has a market value of $67,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:

Answer 1

Answer:

Building= $334,000

Fontaine's capital account= $217,000

Explanation:

From the question above

Fountain company and Monroe company come together to form a partnership.

Fontaine invests a building that has a market value of $334,000

The partnership takes charge for a $117,000 note secured by a mortgage on the building

Monroe invests $92,000 on cash and equipments

The cash and equipments has a market value of $67,000

Therefore the amount recorded for the building is $334,000

The amount recorded for Fontaine's capital account is

= $334,000-$117,000

= $217,000

Hence for the partnership the amounts recorded for the building and fontaine's capital account is $334,000 and $217,000 respectively.