Illustration: A. Rolfe and T. Shea combine their proprietorships to start a partnership named U.S. Software. Rolfe and Shea have the following assets prior to the formation of the partnership. Book Value Fair Value A. Rolfe T Shea A. Rolfe T.Shea $ 8,000 $ 9,000 8,000 $9,000 Cash Equipment Accumulated depreciation equipment (2,000) Accounts receivable Allowance for doubtful accounts 5,000 4,000 4,000 1,000) $11,000 12,300 $12,000 $12,000 4,000 (700)