HealthSource, LLC, consists of two doctors, Drew and Moore, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Mann has been asked to join the LLC. Prior to admitting Mann, the assets of HealthSource were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by $35,000. Prior to the revaluation, the equity balances for Drew and Moore were $201,000 and $289,000, respectively.

a. Provide the journal entry for the asset revaluation.

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

1. Mann purchased a 30% interest in HealthSource, LLC, for $285,000.

2. Mann purchased a 25% interest in HealthSource, LLC, for $155,000.