Watson Purchased One-Half of Dalton's Interest in the Patton and Dalton

question 46

Essay

Watson purchased one-half of Dalton's interest in the Patton and Dalton partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $93,000. Patton and Dalton share net income equally. Dalton had a capital balance of $35,000 prior to these transactions.
Required:
a. Provide the journal entry for the revaluation of land.
b. Provide the journal entry to admit Watson.

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Definitions:

Social Consequences

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Governing Empire

The administration and rule over a vast territory comprising many nations or peoples, typically by a single sovereign authority or government, often marked by colonial expansion.

Seven Years' War

A worldwide war that occurred from 1756 to 1763, engaging the major world powers of that era and impacting regions including Europe, North America, Central America, the coast of West Africa, India, and the Philippines.