answer the following and provide the solution.

PROBLEM 2 A and B decided to form a partnership. A will contribute cash of P300,000, while B contributed a machine worth P850,000 but with a current fair value of P650,000. The partners agreed that since A will use his talents and skills in the business, A and B shall have a 60:40 interest respectively. The agreements made by the partners shall be reflected in their initial credits. Required: a. Determine the correct valuations of the partners' contributions in the partnership books of accounts. b. Provide the journal entry. PROBLEM 3 A and B formed a partnership. The following are their capital contributions: A B Cash 300,000 Accounts receivable 50,000 Equipment 350,000 Total 250,000 350,000 Additional information: . The accounts receivable includes a P10,000 account that is deemed uncollectible. The equipment is over-depreciated by P30,000. The equipment was obtained by B through financing. The related loan payable has an unpaid balance of P125,000 which the partnership assumes on repaying. Question: Which partner has the higher capital credit, and by how much