Tina, Lou and Lena are partners sharing profits and losses in the ratio of 2:2:1 and have capital balances of 400,000, 400,000, and 200,000, respectively

The following independent situations are given:

a.) Rod purchases half of Lena's interest, paying her directly for an amount that earned for her a profit of 50,000

b.) Rod pays 240,000 directly to the partners for a one-fourth share of the partnership

c.) Rod pays 100,000 directly to Tina for one third of her share in the partnership. Partners agree that it is time to revalue the assets of the partnership using as a basis the amount Rod is willing to pay.

Direction:

a. How much did Rod pay Lena in situation a? Record the admission of Rod.

b. How much is the gain or loss of the partners in situation b? Record Rod's admission.

c. How much should the asset revaluation be in situation c? Make two entries.