15-17)The DELS partnership was formed by combining individual accounting practices on May 10, 20X1. The initial investments were as follows:

	Current Value			Tax Basis
Delaney:
Cash	$	8,600		$	8,600
Building		60,800			33,000
Mortgage payable, assumed by DELS		36,500			36,500
Engstrom:
Cash		9,400			9,400
Office furniture		24,100			17,700
Note payable, assumed by DELS		10,700			10,700
Lahey:
Cash		12,400			12,400
Computers and printers		18,500			21,500
Note payable, assumed by DELS		16,200			16,200
Simon:
Cash		22,400			22,400
Library (books and periodicals)		7,300			5,300

Required: a. Prepare the journal entry to record the initial investments using GAAP accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Calculate the tax basis of each partners capital if Delaney, Engstrom, Lahey, and Simon agree to assume equal amounts for the payables.