Health Source Medical, LLC, consists of two doctors, Dobbs and Fox, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lindsey Kopp has been asked to join the LLC. Prior to admitting Kopp, the assets of Health Source were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by $20,000. Prior to the revaluation, the equity balances for Dobbs and Fox were $300,000 and $325,000, respectively.

a. Provide the journal entry for the asset revaluation.

b. Provide the journal entry for the bonus under the following independent situations:

1. Kopp purchased a 30% interest in Health Source Medical, LLC, for $310,000.

2. Kopp purchased a 25% interest in Health Source Medical, LLC, for $175,000.