Boswell and Johnson form a partnership on May 1, 2016. Boswell contributes cash of $66,000; Johnson conveys title to the following properties to the partnership 5 points Book Value Fair Value Land Building and equipment $ 23,000 $ 44,000 43,000 52,000 eBook The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized According to the articles of partnership written by the partners, profits and losses are allocated based on the following formula Print Boswell receives a compensation allowance of $1,000 per month. All remaining profits and losses are split 60:40 to Johnson and Boswell, respectively . Each partner can make annual cash drawings of $5,000 beginning in 2017 References Net income of $19,000 is earned by the business during 2016 Walpole is invited to join the partnership on January 1, 2017. Because of her business reputation and financial expertise, she is given a 40 percent interest for $70,000 cash. The bonus approach is used to record this investment, made directly to the business. The articles of partnership are amended to give Walpole a $3,000 compensation allowance per month and an annual cash drawing of $10,000. Remaining profits are now allocated 45% Johnson Boswell Walpole 40