The DELS partnership was formed by combining individual accounting practices on May 10, 20X1. The initial investments were as follows:

	Current Value			Tax Basis
Delaney:
Cash	$	8,300		$	8,300
Building		60,100			33,300
Mortgage payable, assumed by DELS		36,900			36,900
Engstrom:
Cash		9,900			9,900
Office furniture		23,500			17,300
Note payable, assumed by DELS		11,500			11,500
Lahey:
Cash		12,700			12,700
Computers and printers		18,600			22,200
Note payable, assumed by DELS		15,900			15,900
Simon:
Cash		21,800			21,800
Library (books and periodicals)		7,100			5,100

Required: a. Prepare the journal entry to record the initial investments using GAAP accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Calculate the tax basis of each partners capital if Delaney, Engstrom, Lahey, and Simon agree to assume equal amounts for the payables.