Jones and Smith formed a partnership with each partner contributing the following items: JonesSmithCash$80,000 $40,000 Building- Cost to Jones 300,000 - Fair Value 400,000 Inventory- Cost to Smith 200,000 - Fair Value 280,000 Mortgage Payable 120,000 Accounts Payable 60,000 Assume that for tax purposes Jones and Smith agree to share equally in the liabilities assumed by the Jones and Smith partnership.Refer to the above information. What is the balance in each partner's capital account for financial accounting purposes? JonesSmithA.$350,000 $270,000 B.$260,000 $180,000 C.$360,000 $260,000 D.$500,000 $300,000
A. Option A
B. Option B
C. Option C
D. Option D
Answer: C
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