1) Jim and Bob formed a partnership on February 20, 2019. Jim contributed cash of $150,000, while Bob contributed inventory with a fair value of $120,000. Due to Jim's expertise in selling, Bob agreed that Jim should have 60 percent of the total capital of the partnership. Jim and Bob agreed to recognize goodwill. What is the total capital of the Jim and Bob partnership and the capital balance of Jim after the goodwill is recognized? Total Capital, Jim Capital A) $450,000 $270,000 B) $330,000 $198,000 C) $300,000 $180,000 D) $270,000 $162,000

2) Austin and Elyse formed a partnership on February 1, 2019. Austin contributed cash of $120,000 and Elyse contributed land with a fair value of $160,000. The partnership assumed the mortgage on the land which amounted to $40,000 on February 1. Elyse originally paid $90,000 for the land. On July 31, 2019, the partnership sold the land for $190,000. Assuming Austin and Elyse share profits and losses equally, how much of the gain from sale of land should be credited to Austin for financial accounting purposes? A) $15,000 B) $45,000 C) $0 D) $35,000