On November 1, Jackson and Kiln Formed a Partnership with Jackson

On November 1, Jackson and Kiln formed a partnership with Jackson contributing land valued at
$180,000 and a building valued at $265,000. Kiln contributed $195,000 in cash. The partnership assumed the mortgage on Jackson's property of $130,000. Profits and losses are to be shared equally. What are the balances of the partner's capital accounts after recording these transactions?

A) Jackson: $315,000 and Kiln: $195,000
B) Jackson: $445,000 and Kiln: $195,000
C) Jackson: $380,000 and Kiln: $130,000
D) Jackson: $255,000 and Kiln: $255,000

Correct Answer:

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