Greg Thomas purchased one-half of Ian Hamiltons interest in the Freidman and Hamilton partnership for $49,500. Prior to the investment, land was revalued to a market value of $189,200 from a book value of $116,400. Adam Freidman and Ian Hamilton share net income equally. Hamilton had a capital balance of $52,400 prior to these transactions.

1. Provide the journal entry for the revaluation of land.

2. Provide the journal entry to admit Thomas.

Adriana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows:

1. Annual salary allowance to Gonzalez of $25,000.

2. Interest of 5% on each partners capital balance on January 1.

3. Any remaining net income divided to Gonzalez and Van Horne, 2:1.

Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000.

How much net income should be distributed to Gonzalez and Van Horne?