$4-$ Steve and John drafted a partnership agreement that lists the following FV assets contributed at the partnership's formation:

Contributed by

Steve

John

Cash

$$70\mathrm{.}000$

$$150,000$

Inventory

$75,000$

$95,000$

Building

$190,000$

$80,000$

Furniture & Equipment

$15,000$

$35\mathrm{.}000$

The building Steve contributed is subject to a mortgage of $$50,000,$ which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly.

a$)$ What amounts should be recorded as capital for Steve and John at the formation of the partnership without a true up for the $50/50$ profit and loss allocation? $(2$pts$)$

b$-$ If the partners agreed on a $50\%/50\%$ capital ratio with a "true up ratio" what is the "true up$"$ payment required for John to receive? $(2$Pts$)$