Ashley and Kayla are members in an LLC with equity balances of $50,000 and $60,000 respectively. They share profits and losses in a ratio 2:3. Sheila is to be admitted into the LLC. Prior to admission, merchandise inventory was revalued from a book value of $9,000 to a current market value of $4,000.

a. Journalize the asset revaluation. (3 pts)

b. Journalize Sheilas admission if Sheila purchased a 20% interest in the LLC for $45,000. (8 pts)

Show the bonus calculation (3 pts).