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.

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2. What accounting method is used to record the admission of Roberts?
4. . Suggest an alternative method that could have been used to account for the admission of Roberts. Explain the difference.