1.Partner A and Partner B decide to form a partnership.Partner A contributes $300,000 in cash.Partner B contributes buildings and equipment with a fair market value of $500,000, subject to a mortgage of $150,000, which the partnership assumes.

Assume the partners specify an agreed-upon percentage in the initial partner capital, as follows: 40% to Partner A, and 60% to Partner B.The partnership agreement specifies that the goodwill approach to partnership formation is used.

prepare the entry to form the partnership.