Partnership Accounting Comprehensive Case Study On January 1, 2011, Adam Cooper and Brett Harken form a partnership (C&H Variety Shop) Adam agrees to invest $37,400 in cash and merchandise inventory valued at $58,000. Brett invests the following: cash of $13,000; Accounts Receivable with a face amount of $136,000 ($6,000 are worthless) and an allowance account of $8,400; merchandise inventory with a cost of $90,000 (FMV $84,700); and equipment with a cost of $155,000 (FMV of $69,000) with a Note Payable of $11,000. They agreed to the following provisions in their Partnership contract: Annual Salary Allowances of $48,000 for Adam and $36,000 for Brett. . 10% Interest of their beginning Capital Balances per year. Split remaining income 3:2. During their first year of operation, they had Net Income of $251,000. Adam withdrew $48,000 during the year; Brett withdrew $18,000.