E 16-15 Recording new partner investment and partner retirements—Various situations 1. Bil and Ken enter into a partnership agreement in which Bil is to have a 60 percent interest in capital and profits and Ken is to have a 40 percent interest in capital and profits. Bil contributes the following:

Cost Fair Value Land $10,000 $20,000 Building 100,000 60,000 Equipment 20,000 15,000