Question: Salt and pepa formed a partnership called hip hop associates on January 1, 2016. Salt transfers to the partnership cash of $60,000 equipment whose origins cost was $40,000 and whose accumulated depreciation is $20,000 but whose fair market value is $13,000 and $3,000 of supplies. Pepa contributes $90,000 in cash and merchandise inventory which originally cost her $18,000 but whose fair market value on 1/1/16 was $9,000. Prepared all the necessary journal entries relating to the formation of hip hop associates.