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Question
Gleason invested $90,000 in the James and Kirk Partnership for ownership equity of $90,000. Prior to the investment, land was revalued to a market value of $425,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio.
a. Journalize the entry for the revaluation of land. (The partnership does not use the temporary asset revaluation account.)
b. Journalize the entry to admit Gleason.
Answer
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