Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $368,000; the partnership assumes responsibility for a $134,000 note secured by a mortgage on the property. Monroe invests $109,000 in cash and equipment that has a market value of $84,000. For the partnership, the amounts recorded for Fontaine's Capital account and for Monroe's Capital account are:
A. Fontaine, Capital $234,000; Monroe, Capital $84,000.
B. Fontaine, Capital $368,000; Monroe, Capital $193,000.
C. Fontaine, Capital $368,000; Monroe, Capital $109,000.
D. Fontaine, Capital $234,000; Monroe, Capital $193,000.
E. Fontaine, Capital $234,000; Monroe, Capital $109,000.
Answer: D
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