Mary Hartmann, sole proprietor of a hardware business, decides to form a partnership with Ned Isaacs. Mary's accounts are as follows:

Book Value | Market Value

Cash $ 20,000 | $ 20,000

Accounts Receivable (net) 52,000 | 45,000

Inventory 112,000 | 125,000

Land 40,000 | 100,000

Building (net) 300,000 | 340,000

Accounts Payable 25,000 | 25,000

Mortgage Payable 75,000 | 75,000

Ned agrees to contribute $50,000 for a 25% interest. Journalize the entries to record (a) Mary's investment and (b) Ned's investment.

Describe the calculations used to record each investment.