Partnership Dissolution: Admission of New Partner 1. On August 1, 2008, prior to the admission of AB, Z and K Enterprises have the following account balances: 36000 38000 300000 Cash 30000 Accounts Receivable 400000 Allowance for bad debts Merchandise Inventory 110000 Equipment - net 134000 Accounts Payable Z, Capital K, Capital 300000 Z and K share profit and loss on 1:1 ratio. Before the admission of AB, the partners agree on the following adjustments to bring the assets and liabilities to their fair values: a. The allowance for bad debts should be brought to 10% of the outstanding accounts receivable b. The current market value of the merchandise inventory is 140,000 c. Accrued expenses of 4,000 should be recognized in the accounting records 1. If AB purchases 50% of Z's capital at its adjusted carrying value, how much is the total assets of the partnership just after the admission of Grant? 2. If AB is admitted into the partnership upon his investment of 400,000 for 2/5 interest in capital and profit, what is the total capital of the partnership just after the admission of AB