The Pelican Partnership was formed on August 1 of the current year and admitted Morlan and Merriman as equal partners on that date. The partners both contributed $300,000 of cash to establish a children's clothing store in a local shopping mall. The partners spent August and September buying inventory, equipment, supplies, and advertising for their "Grand Opening" on October 1. Following are some of the costs the partnership incurred during its first year of operations. Assume a calendar year-end Legal fees to form partnership Advertising for "Grand Opening" Advertising after opening Consulting fees for establishing accounting system Rent, five months at $2,000 per month Utilities at $1,000 per month Salaries to salesclerks (beginning in October) Payments to Morlan and Merriman for services ($6,000 per month each for three months, beginning in October) Tax return preparation expense $8,000 18,000 30,000 20,000 10,000 5,000 50,000 36,000 12,000 In addition, on October 1, the partnership purchased all of the assets of Granny Newcombs, Inc. Of the total purchase price for these assets, $200,000 was allocated to the trade name and logo