1. Tom and Julie formed a management consulting partnership on January 1, 2008. The fair value of the net assets invested by each partner follows:

Tom Julie Cash $13,000 $12,000 Accounts receivable 8,000 6,000 Office supplies 2,000 800 Office equipment 30,000 Land 30,000 Accounts payable 2.000 5,000 Mortgage payable 18,800