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Revaluing and Contributing Assets to a Partnership Demarco Lee invested $60,000 in the Camden and Sayler...

Revaluing and Contributing Assets to a Partnership Demarco Lee invested $60,000 in the Camden and Sayler partnership for ownership equity of $60,000. Prior to the investment, equipment was revalued to a market value of $39,000 from a book value of $30,000. Kevin Camden and Chloe Sayler share net income in a 2:1 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank. Feedback a. The accounts should be adjusted for the equipment revaluation. Any net adjustment (increase or decrease) in asset values is divided among the capital accounts of the existing partners, similar to the division of income. b. Provide the journal entry to admit Lee.

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Answer #1

Asset revalued gain =$39000-$30000 =$9000

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