Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $370,000; the partnership assumes responsibility for a $135,000 note secured by a mortgage on the property. Monroe invests $110,000 in cash and equipment that has a market value of $85,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:

Multiple Choice

• Building $235,000; Fontaine, Capital $235,000.

• Building $370,000; Fontaine, Capital $235,000.

• Building $235,000; Fontaine, Capital $135,000.

• Building $370,000; Fontaine, Capital $330,000.

• Building $370,000; Fontaine, Capital $370,000.