Table 12-12

on January 1, 2017, Ruben Ho and Clay

Table 12-12

On January 1, 2017, Ruben Ho and Clay Runnerup formed the Ruben and Clay Partnership by investing the following assets and liabilities in the business:
$\begin{array} { l c c } \text { Cash } & \begin{array} { c } \text { Ruben's } \\\text { Book value } \\\$ 12,000\end{array} & \begin{array} { c } \text { Clay's } \\\text { Book value } \\\$ 18,500\end{array} \\\text { Equipment } & 38,000 & 53,500 \\\text { Accumulated amort.-equipment } & 8,200 & 9,900 \\\text { Buildings } & 84,000 & 95,000 \\\text { Accumulated amort.-buildings } & 25,000 & 35,000 \\\text { Land } & 60,000 & 66,000 \\\text { Accounts payable } & 35,000 & 35,000 \\\text { Note payable } & 17,000 & 29,000\end{array}$
An independent appraiser believes that Ruben's equipment has a market value of $29,000 and Clay's equipment has a market value of $47,500. The appraiser indicates Ruben's building has a current market value of $90,000 and Clay's building has a current market value of $110,000. The appraiser further indicates that Ruben's land has a current market value of $78,000 and Clay's land has a current market value of $80,000. Ruben and Clay agree to share profits and losses in a 40:60 ratio respectively. During the first year of operations, the business net income income of $47,000. Each partner withdrew $20,000 cash.
-Refer to Table 12-12.Determine the capital balances of Ruben Ho and Clay Runnerup,on December 31,2017,after the completion of their first year of operations.