- Jagan and Kalap form a partnership. Jagan contributes $300,000 in cash. Kalan contributes assets having the following fair market values: Merchandise, $65,000 Building, $500,000 Equipment, $100,000 The partnership assumes a mortgage of $150,000 on the building. Required Prepare the entry to record the formation of the partnership, under each of the following methods: a. Capital accounts are set equal to net assets invested. 0:00 b. The partners have an equal interest in the initial total partnership capital, and the bonus method is used. c. The partners have an equal interest in the initial total partnership capital, and the goodwill method is used