Boswell and Johnson form a partnership on May 1, 2016. Boswell contributes cash of $55,000 Johnson conveys title to the following properties to the partnership: Book Value Fair Value 17,588 $33,888 37,588 41,8 Land Building and equipment The partners agree to start thelr partnershlp 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 Boswell recelves a compensation allowance of $800 per month. All remalning profits and losses are split 70:30 to Johnson and Boswell, respectively. Each partner can make annual cash drawings of $8,000 beginning In 2017. Net Income of $13,500 is earned by the business during 2016. Walpole Is Invited to join the partnershlp on January 1, 2017. Because of her business reputation and financlal expertise, she Is given a 40 percent Interest for $59,000 cash. The bonus approach is used to record thls 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 $16,000. Remalning profits are now allocated: Johnson Boswell Walpole sex 18 48 All drawings are taken by the partners during 2017. At year-end, the partnership reports an earned net Income of $39,000