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Question
Wonder purchased one-half of Darwin’s interest in the Todd and Darwin Partnership for $50,000. Prior to the investment, land was revalued to a market value of $175,000 from a book value of $100,000. Todd and Darwin share net income equally. Darwin had a capital balance of $40,000 prior to these transactions.
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 Wonder.
Answer
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