Question: On April 30, 2010, Algee, Belger, and Ceda formed a partnership by combining their separate business proprietorships. Algee contributed cash of $50,000. Belger contributed property

On April 30, 2010, Algee, Belger, and Ceda formed a partnership by combining their separate business proprietorships.

Algee contributed cash of $50,000. Belger contributed property with a $36,000 carrying amount, a $40,000 original cost, and $80,000 fair value. The partnership accepted responsibility for the $35,000 mortgage attached to the property. Ceda contributed equipment with a $30,000 carrying amount, a $75,000 original cost, and $55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest April 30, 2010 capital account balance?

a. Algee.

b. Belger.

c. Ceda.

d. All capital account balances are equal.

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