Lawson and Redwood formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Lawson contributed her sole proprietorship's assets and liabilities (credit balances in parentheses) as follows:

Book Value Current Market Value Accounts Receivable: 12,600. 11,000

Merchandise Inventory: 42,000. 32,000

Prepaid Expenses: 3,600 3,300

Store Equipment, Net: 43,000. 25,000

Accounts Payable: (21,000) (21,000)