1. Jazz and Clippers signed a partnership agreement that lists the following FV assets contributed at the partnership's formation:

	Contributed by
	Jazz	Clippers
Cash	$80,000	$20,000
Inventory	70,000	85,000
Building	230,000	150,000
Furniture & Equipment	45,000	20,000

The building Clipper contributed is subject to a mortgage of $70,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly.

1. What amounts should be recorded as capital for Jazz and Clipper at the formation of the partnership without a true up for the 50/50 profit and loss allocation? (3pts)
2. If the partners agreed on a 60%/40% capital ratio, what is the true up payment required by Clipper? (2Pts)