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Problem 1: Majeau and Horcica are forming a partnership. Majeau will invest equipment that currently is being used by another business owned by Majeau. The equipment has a fair market value of $45,000. Also, the partnership will assume responsibility for a $10,000 note secured the equipment. Horcica will invest $25,000 cash. On the books of the partnership, the amount to be recorded as a credit to Majeau's capital account is
Multiple Choice
Option 1: $25,000
Option 2: $35,000
Option 3: $55,000
Option 4: $10,000
Option 5: $30,000
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