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Revaluing and Contributing Assets to a Partnership Demarco Lee invested $34,000 in the Camden & Sayler partnership for owners
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Answer #1

Journal

a Equipment 45,000
Capital, Kevin Camden 11,250
Capital, Chloe Sayler 33,750
b Cash 34,000
Capital, Demarco Lee 34,000

Profit on revaluation of equipment = Fair market value - Book value

= 335,000 - 290,000

= $45,000

Share of profit of Kevin Camden = 45,000 x 1/4

= $11,250

Share of profit of Chloe Sayler = 45,000 x 3/4

= $33,750

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