QUESTION 1 1. Fred, Jack and Mona formed a partnership with each partner contributing the following assets: Mona Fred Jack Book Value Fair Value Book Value Fair Value Book Value Fair Value Cash $1,000 $1,000 $ 900 $ 500 $3,000 $3,000 Accounts Pay 200 200 100 1 00 Equipment 1,800 2,000 2,800 3,000 5,000 What is Jack's capital balance after the formation of the partnership? 800 A. $2,800 B. $7,800 C. $3,800 D. $3,400