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 $190,000, Merinas capital is $152,000, and they share income in a ratio of 3:2, respectively.

e. Wayne directly purchases a 25 percent interest by paying Debra $80,000 and Merina $57,000. The land account is increased before Wayne is admitted. Record the revaluation of land. Record the reclassification of capital for the admission of Wayne.

f. Wayne invests $77,000 for a 20 percent interest in the total capital of $419,000. Record Wayne's investment of $77,000 for the one-fifth interest given that the total capital is $419,000.

g. Wayne invests $118,000 for a 20 percent interest. Goodwill is to be recorded. Record the entry for goodwill. Record the admission of Wayne.