DE12-3 Dean Hahn invests a building in a partnership with Margo Klem. Hahn purchased the building in 20X1 for $300,000. Accumulated depreciation to the date of forming the part- nership is $80.000. A real estate appraiser states that the building is now worth $285,000. Hahn wants $400,000 capital in the new partnership. but Klem objects. Klem believes that capital contribution into the partnership should be measured by the book value of his build- ing. Klem and Hahn seek your advice. Which value of the building is appropriate for measuring Hahn's capital, book value or current market value? State the reason for your answer. Give the partnership's journal entry to record Hahn's investment in the business.