Ihsan Co. & Mufd Co. formed a partnership with each partner contributing the following items:

Ihsan Company

Mufid Company

Book Value

Market Value

Book Value

Market Value

Cash

$ 80,000

$40,000

Building

300,000

400,000

Inventory

200,000

280,000

Accounts receivable

35,000

30,000

Note payable

120,000

60,000

Ihsan and Mufid agree to share profits and losses equally.

What is the balance in each partner's capital account for financial accounting purposes?

a.

Ihsan $360,000 , Mufid $ 290,000

b.

Ihsan $260,000 and Mufid $290,000

c.

Ihsan $ 360,000 , Mufid $ 215,000

d.

Ihsan $260,000 and Mufid $215,000