On January 1, 2025, Mack contributes land in a partnership with Vendler. Mack purchased the land in 2020 for \($300,000.\) A real estate appraiser now values the land at \($700,000.\) Mack wants \($700,000\) capital in the new partnership, but Vendler objects.
Vendler believes that Mack’s capital contribution should be measured by the book value of his land. Vendler and Mack seek your advice.
Requirements 

1. Which value of the land is appropriate for measuring Mack’s capital—book value or current fair value?
2. Give the partnership’s journal entry to record Mack’s contribution in the business.