On January 1,2018, Mackus contributes land in a partnership with Williams. Mackus purchased the land in 2013 for $275,000. A real estate appraiser now values the land at $700,000. Mackus wants $700,000 capital in the new partnership, but Williams objects.Williams believes that Mackus's capital contribution should be measured by the book value of his land. Williams and Mackus seek your advice.

Requirement 1. Which value of the land is appropriate for measuring Mackus's capital-book value or current market value?

Requirement 2. Give the partnership's journal entry to record Mackus's contribution in the business. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date			Accounts and Explanation	Debit	Credit
2018
Jan. 1