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Question
Amazon invested $128,000 in the Jungle and River Partnership for ownership equity of $128,000. Prior to the investment, equipment was revalued to a market value of $90,000 from a book value of $72,000. Jungle and River share net income in a 2:1 ratio.
a. Journalize the entry for the revaluation of equipment. (The partnership does not use the temporary asset revaluation account.)
b. Journalize the entry to admit Amazon.
Answer
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