Wonder Purchased One-Half of Darwin's Interest in the Todd and Darwin's

question 74

Essay

Wonder purchased one-half of Darwin's interest in the Todd and Darwin's 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.
Required:
a. Provide the journal entry for the revaluation of land.
b. Provide the journal entry to admit Wonder.

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