Tara 60% profit loss ratio. Tara contributed a parcel of land (acquired on 1/1/1995 as investment property) and its related mortgage.

Tara ‐ 60% profit & loss ratio. Tara contributed a parcel of land (acquired on 1/1/1995 as investmentproperty) and its related mortgage. The land originally cost $208,000 and had a fair market value of$350,000 as of the date it was contributed to the partnership. There was a $180,000 balance on thequalified nonrecourse mortgage assumed by the partnership. The land is known as "Dragon Acres".The capital contribution of the land and its related mortgage was made on the date the partnershipwas formed. The land was used by the Partnership as a location to train the horses.You need to make a journal entry to record Tara's capital contribution of the land subject to themortgage as of 1/1/2010

Land (Dr)350,000Mortgage Payable (Cr)180,000Tara - Capital (Cr)170,000(Record Tara's capital contribution by way of land)Note: In absence of information, the bonus method (difference between...