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	$	8,700		$	8,700
Building		61,900			32,300
Mortgage payable, assumed by DELS		37,100			37,100
Engstrom:
Cash		9,900			9,900
Office furniture		24,100			17,700
Note payable, assumed by DELS		10,500			10,500
Lahey:
Cash		13,300			13,300
Computers and printers		18,500			22,300
Note payable, assumed by DELS		15,200			15,200
Simon:
Cash		22,000			22,000
Library (books and periodicals)		8,200			6,200

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.