Center City Medical, LLC, consists of two doctors, Conway and Patel, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lindsey Truett has been asked to join the LLC. Prior to admitting Truett, the assets of Center City were revalued to reflect their current market values. The revaluation resulted in medical equipment being reduced by $14,000. Prior to the revaluation, the equity balances for Conway and Patel were $300,000 and $340,000, respectively.

a. Provide the journal entry for the asset revaluation.

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

1. Truett purchased a 30% interest in Center City Medical, LLC, for $340,000.

2. Truett purchased a 26% interest in Center City Medical, LLC, for $190,000.