Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debras capital is $200,000, Merinas capital is $160,000, and they share income in a ratio of 3:2, respectively.

Record Waynes admission for each of the following independent situations:

1. Wayne directly purchases a 25 percent interest by paying Debra $87,800 and Merina $65,200. The land account is increased before Wayne is admitted

Record the revaluation of land.

Record the reclassification of capital for the admission of Wayne.

2. Wayne invests $70,000 for a 20 percent interest in the total capital of $430,000.

Record Wayne's investment of $70,000 for the one-fifth interest given that the total capital is $430,000.

3. Wayne invests $102,000 for a 20 percent interest. Goodwill is to be recorded.

Record the entry for goodwill.

Record the admission of Wayne.