Question : 85.Fontaine and Monroe forming a partnership. Fontaine invests a building : 1258241

85.Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for the building and for Fontaine’s Capital account are:   

A.Building $250,000; Fontaine, Capital $250,000.

B.Building $175,000; Fontaine, Capital $175,000.

C.Building $250,000; Fontaine, Capital $75,000.

D.Building $250,000; Fontaine, Capital $175,000.

E.Building $175,000; Fontaine, Capital $75,000.

86.Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for Fontaine’s Capital account and for Monroe’s Capital account are:   

A.Fontaine, Capital $175; Monroe, Capital $45,000.

B.Fontaine, Capital $0; Monroe, Capital $100,000.

C.Fontaine, Capital $250,000; Monroe, Capital $100,000.

D.Fontaine, Capital $250,000; Monroe, Capital $155,000.

E.Fontaine, Capital $175,000; Monroe, Capital $155,000.

87.Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for total assets and for total capital account are:   

A.Total assets $405,000; total capital $330,000.

B.Total assets $350,000; total capital $350,000.

C.Total assets $350,000; total capital $275,000.

D.Total assets $305,000; total capital $230,000.

E.Total assets $405,000; total capital $305,000.

88.Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Cox’s capital account?    

A.$50,000.

B.$64,286.

C.$45,000.

D.$36,000.

E.$60,000.

89.Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Lee’s capital account?   

A.$50,000.

B.$67,500.

C.$45,000.

D.$54,000.

E.$60,000.

90.Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for a 5% interest allowance on the partner’s capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $150,000 for its first year, what amount of income is credited to North’s capital account?    

A.$50,000.

B.$63,500.

C.$61,500.

D.$47,500.

E.$45,000.

91.Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for a 5% interest allowance on the partner’s capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $174,000 for its first year, what amount of income is credited to Lee’s capital account?    

A.$58,000.

B.$57,000.

C.$61,500.

D.$55,500.

E.$48,000.

92.Mace and Bowen are partners and share equally in income or loss. Mace’s current capital balance is $135,000 and Bowen’s is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The amount credited to Kent’s capital account is:   

A.$111,000.

B.$115,000.

C.$92,500.

D.$120,000.

E.$119,000.

93.Mace and Bowen are partners and share equally in income or loss. Mace’s current capital balance is $135,000 and Bowen’s is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The balances in Mace’s and Bowen’s capital accounts after admission of the new partner equal:    

A.Mace $135,000; Bowen $120,000.

B.Mace $137,000; Bowen $122,000.

C.Mace $133,000; Bowen $118,000.

D.Mace $139,000; Bowen $120,000.

E.Mace $135,000; Bowen $124,000.

94.Peters and Chong are partners and share equally in income or loss. Peters’ current capital balance is $140,000 and Chong’s is $130,000. Peters and Chong agree to accept Aaron with a 30% interest in the partnership. Aaron invests $98,000 in the partnership. The balances in Peters’s and Chong’s capital accounts after admission of the new partner equal:   

A.Peters $140,000; Chong $130,000.

B.Peters $146,200; Chong $136,200.

C.Peters $145,000; Chong $135,000.

D.Peters $133,800; Chong $123,800.

E.Peters $166,027; Chong $156,027.