Problem:
S. Stephens adn J. Perez are partners in Space designs. Stephens and Perez share income equally. D Fredrick will be admitted to the partnership. Prior to teh admission, equipment was revalued downward by $18,000. The capital balances of each partner are $100,000 adn $139,000, respectively, prior to the revaluation.
Required:
Question 1: Provide the journal entry for the asset revaluation.
Question 2: Provide the journal entry for Fredricks' admission under the following independent situations:
- Fredricks purchased a 25% interest ofr $75,000.
- Fredricks purchased a 35% interest for $115,000.
Note: Please provide through step by step calculations.