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Question: Watson purchased one-half of Dalton's interest in the Patton and Dalton partnership for $40,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $100,000. Patton and Dalton share net income equally. Dalton had a capital balance of $30,000 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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