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Question - Jackson Cooke and Julia Bamber are forming a partnership to develop an amusement park near Ottawa. Cooke contributes cash of $3 million and land valued at $30 million. When Cooke purchased the land, its cost was $16 million. The partnership will assume Cooke's $6 million note payable on the land. Bamber invests cash of $15 million and construction equipment that she purchased for $14 million (accumulated amortization to date is $6 million). The equipment's market value is equal to its book value.
Required -
1. Journalize the partnership's receipt of assets and liabilities from Cooke and Bamber on November 10. Record each asset at its current market value with no entry to accumulated amortization.
2. Compute the partnership's total assets, total liabilities, and total owners' equity immediately after organizing.
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