3. SpongeBob and Patrick are forming a partnership. SpongeBob will invest a building (Crusty Crab) that currently is being used by another business owned by him. The building has a market value of $110,000 Also, the partnership will assume responsibility for a $50,000 note payable secured by a mortgage on that building. Patrick will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for SpongeBob's Capital account are: A) Building, $110,000 and SpongeBob, Capital, S110,000 B) Building, $50,000 and SpongeBob, Capital, 550,000 C) Building, $70,000 and SpongeBob, Capital, $60,000 D) Building. $110,000 and SpongeBob, Capital, $60,000 E) Building, $50,000 and SpongeBob, Capital, $110,000 4. Spiderman, Captain America, and Ironman formed a partnership with Spiderman contributing $60,000, Captain America contributing $50,000 and Ironman contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Ironman's capital account? A) $20,000 B) $25,000 C) $30,000 D) $40,000 E) $75,000