Reference no: EM13375556

Question:  Tupper and Tolin have decided to form a partnership to provide environmental testing services to industry. The individuals will share profits equally and have conveyed the following assets and liabilities to the partnership:

                                                     Tupper                                   Tolin           

	Fair Value	Book Value	Fair Value	Book Value
Cash	$20,000	$20,000	mce_markernbsp;   -	mce_markernbsp;   -
Equipment  basis	12,000	10,000	34,000	40,000
Vehicles  basis			6,000	6,000
Notes payable*	8,000	6,000	20,000	22,000

* Associated with equipment
Required:

1)  Calculate the capital balance of each partner in the partnership subsequent to the contributions.
2)  Prepare the journal entry necessary to record the partners' contributions.