Advanced Financial Reporting -- Partnerships

Assets Cash Marketable Securities Inventory Land Building - Net $100,000 240,000 150,000 160,000 800,000 Total Assets 1,450,000 Equities Sam, Capital Norm, Capital Woody, Capital $850,000 450,000 150,000 Total Equities 1,450,000 The partners agree to admit Dianne for a one-tenth interest. The Fair Market Value for the partnership land is $360,000 and the Fair Market Value of the inventory is $300,000 Required: 1) Record the entry to revalue the partnership assets prior to the admission of Dianne 2) Calculate how much Dianne will have to invest to acquire a 10% interest 3) Assume the partnership assets are not revalued. If Dianne paid $400,000 in exchange for a 10% interest in the partnership, what is the bonus that is allocated to each partner's capital account