Computing initial partner investments
Car and Lam establish an equal partnership in both equity and profits
to operate a used-furniture business under the name C&L Furniture.
Car contributes furniture inventory that cost $120,000 and has fair
value of $160,000. Lam contributes $60,000 cash and delivery equipment
that cost $80,000 and has a fair value of $60,000.
Required: Assume that the initial noncash contributions of the
partners are recorded at fair market value. Compute the ending balance
of each capital account under the bonus and goodwill approaches.