Craig Roberts purchased one-half of Ennis Leighton's interest in the Vale and Leighton partnership for $38,000. Prior
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Craig Roberts purchased one-half of Ennis Leighton's interest in the Vale and Leighton partnership for $38,000. Prior to the investment, land was revalued to a market value of $185,000 from a book value of $87,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions.
Show your work.
- What accounting method is used to record the admission of Roberts?
- . Suggest an alternative method that could have been used to account for the admission of Roberts. Explain the difference.
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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