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For the Two Men and a Plunger return, what differences would occur on this return if, at the beginning of the tax year, the partners purchased a small warehouse building for their shop instead of renting space. They purchased the building for $150,000 ( $20,000 for the land) and paid a down payment of $75,000 and have a loan for the rest. They made payments on the loan during the year totaling $18,500, of which $14,500 was interest payments. Select the most complete response. This change would mainly impact the assets, liabilities, and capital accounts, but the bottom lines on Schedule L, lines 14 and 22 , vould remain the same. But, the changes would occur on the cash, property, and capital account lines. On Schedule L, their cash at year end would be less, their assets would increase by the value of the property, as would the ccumulated depreciation for the building portion. Mortgage interest payments would reduce ordinary income. The partners' basis woul crease by their share of the mortgage liability. On Schedule L, the assets would increase by the value of the property, as would the accumulated depreciation for the building ortion. The partners' capital accounts would increase by their share of the mortgage liability. On Schedule L, their cash at year end would be $75,000 less, and their assets would increase by the value of the property, as ould the accumulated depreciation for the building portion. The ordinary income would be more due to the elimination of the rent ayments. The partners' capital accounts would increase by their share of the acquired property in addition to the amounts of their lares of the mortgage liability. Mark for follow up

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