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GrogVix [38]
4 years ago
13

Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $180,000. However, the b

uilding carries a $56,000 mortgage that will be assumed by the partnership. Smart is investing $120,000 cash. The balance of Maxwell's Capital account will be:_________
A. $180,000.
B. $124,000.
C. $56,000.
D. $64,000.
E. $60,000.
Business
1 answer:
erastovalidia [21]4 years ago
3 0

Answer:

B. $124,000

Explanation:

The balance for Maxwell's capital account will be $124,000 i.e the total Market value of the building he is investing minus the mortgage that is supposed to be paid by the partnership.

$180,000 - $ 56,000 = $124,000

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