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Alan and Kate started a CPA firm as a partnership. Alan contributed cash of $15,000, and Kate invests only $2,000. Kate, however, is a CPA

Alan and Kate started a CPA firm as a partnership. Alan contributed cash of $15,000, and Kate invests only $2,000. Kate, however, is a CPA and worked as a voluntary income tax assistant while she did her undergraduate in accounting. Alan and Kate agreed on equal capital balances.

Record the journal entry for their initial capital contribution following the goodwill method.

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