Response to the following problem:
Seth Green and Nate Smith are forming the partnership Sun Development to develop a theme park near Panama City, Florida. Green contributes cash of $4 million and land valued at $10 million. When Green purchased the land in 20X1, its cost was $8 million. The partnership will assume Green's $3 million note payable on the land. Smith invests cash of $15 million and equipment worth $7 million.
1. Compute the partnership's total assets, total liabilities, and total owners' equity immediately after organizing.
2. Journalize the partnership's receipt of assets and liabilities from Green and from Smith. Record each asset at its current market value.