A) Asa Marlow contributed equipment, inventory, and $48,000 cash to a partnership. The equipment had a book value of $33,000 and a market value of $36,000. The inventory had a book value of $60,000, but only had a market value of $18,000, due to obsolescence. The partnership also assumed a $15,000 note payable owed by Marlow that was used originally to purchase the equipment. Provide the journal entry for Marlows contribution to the partnership.

B) Steve Carpenter and Chelsie Farmer formed a partnership, dividing income as follows:

1. Annual salary allowance to Carpenter of $38,000.
2. Interest of 7.5% on each partners capital balance on January 1.
3. Any remaining net income divided equally.

Carpenter and Farmer had $50,000 and $88,000 in their January 1 capital balances, respectively. Net income for the year was $540,000.

How much net income should be distributed to Carpenter and Farmer? Please show your work.