Lane Tway purchased one-half of Craig Little's interest in the Browne and Little partnership for $18,000. Prior

Question:

Lane Tway purchased one-half of Craig Little's interest in the Browne and Little for $18,000. Prior to the investment, land was revalued to a market value of $140,000 from a book value of $115,000. Leon Browne and Craig Little share net income equally.
Little had a capital balance of $18,000 prior to these transactions.
a. Provide the journal entry for the revaluation of land.
b. Provide the journal entry to admit Tway.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...