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Pat and Rene have been operating a partnership and decide to make Troy a third partner. Current capital balances and profit sharing ratios are below:

Pat and Rene have been operating a partnership and decide to make Troy a third partner. Current capital balances and profit sharing ratios are below:

                    Capital            Ratio
Pat             $140,000           70%
Rene          $ 60,000            30%
Total          $200,000

Troy will pay $100,000 to receive a 50% interest in the business. Please provide journal entry for this transaction.

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