William and Martha drafted a partnership agreement that lists the following assets contributed at the partnership’s formation:

The building is subject to a $10,000 mortgage, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be. distributed evenly. What amounts should be recorded as capital for William and Martha at the partnership’s formation?

Transcribed Image Text:

Contributed by William Martha Cash $20,000 $30,000 Inventory 15,000 Building 40,000 Furniture & Equipment 15,000