The partnership of Chau and Michelle was formed on January 1, 2015. At that date the following assets were invested:
Chau

Michelle

Cash

$220,000

$210,000

Inventory

$120,000

$450,000

Building

$0

$870,000

Machine and equipment

160,000

$0

The building is subject to a mortgage loan of $430,000, which is to be assumed by the partnership. The partnership agreement provides that Chau and Michelle share profits or losses 20% and 80%, respectively. Michelle's capital account at January 1, 2015, should be
a. $1,100,000
b. $1,530,000
c. Cannot be computed from the above information.
d. $1,210,000
a. $1,100,000