Floyd and Merriam Start a Partnership Business on June 12 $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 50,000 \\\hline \text { Merriam } & 20,000 \\\hline\end{array}$$

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 50,000 \\\hline \text { Merriam } & 20,000 \\\hline\end{array}$$ Floyd and Merriam share profits and losses equally. They agreed to dissolve the partnership and start a new one, admitting Ramelow for one-half share in the capital in exchange for land and equipment having a total market value of $70,000. Which of the following is the correct journal entry to record the introduction of Ramelow as a partner?

A) $\begin{array}{c}\begin{array}{|l|}\hline \text {Land and equipment}\\ \hline \text {Ramelow, Capital}\\\hline \end{array}\begin{array}{l|}\hline 70,000\\ \hline\\\hline \end{array}\begin{array}{r|}\hline\\\hline 70,000\\\hline\end{array}\end{array}$

B) $\begin{array}{c}\begin{array}{|l|}\hline \text {Floyd, Capital}\\ \hline \text {Ramelow, Capital}\\\hline \end{array}\begin{array}{l|}\hline 70,000\\ \hline\\\hline \end{array}\begin{array}{r|}\hline\\\hline 70,000\\\hline\end{array}\end{array}$
C) $$\begin{array} { | c | r | r | } \hline \text { Merriam, Capital } & 35,000 & \\\hline \text { Floyd, Capital } & 35,000 & \\\hline \text { Ramelow, Capital } & & 70,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Land and equipment } & 70,000 & \\\hline \text { Floyd, Capital } & & 35,000 \\\hline \text { Ramelow, Capital } & & 35,000 \\\hline\end{array}$$