Mya and Matt are forming a partnership.Mya is investing a building that has a fair market value of $170,000.However,the building is subject to a $35,000 mortgage.Matt is investing $30,000 cash.The amount to be credited to Mya' capital account is
A)$170,000
B)$35,000
C)$135,000
D)$30,000
E)$200,000

Question

Quizplus · Accepted Answer

Mya's capital account will be credited with the value of the building minus the mortgage, which is $170,000 - $35,000 = $135,000. Matt's investment of $30,000 is not related to the calculation of Mya's capital account.

Mya and Matt Are Forming a Partnership