Marty Stubbs invests land in a partnership with Lee Dix. Stubbs purchased the land in 2007 for \(\$ 200,000\). A real estate appraiser now values the land at \(\$ 500,000\). Stubbs wants \(\$ 400,000\) capital in the new partnership, but Dix objects. Dix believes that Stubbs' capital investment should be measured by the book value of his land.

Dix and Stubbs seek your advice. Which value of the land is appropriate for measuring Stubbs' capital-book value or current market value? State the reason for your answer. Give the partnership's journal entry to record Stubbs' investment in the business.