J & K are forming a partnership.J is investing a building that has a market value of $80,000.However, the building carries a $45,000 mortgage that will be assumed by the partnership.K is investing $20,000 cash.The balance of J's capital is

Question

Quizplus · Accepted Answer

To find the balance of J's capital, we need to subtract the amount of the mortgage from the market value of the building: 
$80,000 - $45,000 = $35,000.
Then, we add this amount to the cash investment of K: 
$35,000 + $20,000 = $55,000.
Therefore, the balance of J's capital is $55,000. 
Hence, the correct answer is choice letter B.

J & K Are Forming a Partnership