OBJ. $3$

Alert Medical, LLC$,$ consists of two doctors, Abrams and Lipscomb, who share in all

income and losses according to a $2$:$3$ income$-$sharing ratio. Dr$.$ Lin has been asked to join

the LLC$.$ Prior to admitting Lin, the assets of Alert Medical were revalued to reflect their

current market values. The revaluation resulted in medical equipment being increased by

$$40,000.$ Prior to the revaluation, the equity balances for Abrams and Lipscomb were

$$154,000$ and $$208,000,$ respectively.

a$.$ Provide the journal entry for the asset revaluation.

b$.$ Provide the journal entry for the bonus under the following independent situations:

Lin purchased a $30\%$ interest in Alert Medical, LLC$,$ for $$228,000.$

Lin purchased a $25\%$ interest in Alert Medical, LLC$,$ for $$124,000.$

Instuctions

Fill in the provided Excel Sheet with the given information