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Problem 1: Adam and Seth formed a partnership on July 1, 20X8. Adam contributed cash of $50,000. Seth contributed property with a $36,000 carrying amount, a $40,000 original cost, and a fair value of $80,000. The partnership assumed the $35,000 mortgage attached to the property. What should Seth's capital account be on July 1, 20X8?
A. $36,000
B. $40,000
C. $45,000
D. $80,000
The bonds of WTP is trading in the local exchange at 90. What is the total cost of land to be capitalized by WTP on July 1, 2014?
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