J. Trifilio and K. Graham are partners in Enviro-Tek Consultants. Trifilio and Graham share income equally. L. Holden will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $6,000. The capital balances of each partner are $90,000 and $150,000, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation.
b. Provide the journal entry for Holden's admission under the following independent situations:
1. Holden purchased a 20% interest for $50,000.
2. Holden purchased a 30% interest for $125,000.