Admitting a New LLC Member With Bonus 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 $33,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $317,000 and $363,000, respectively. a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $406,000. For a compound transaction, if an amount box does not require an entry, leave it blank. 2. Lin purchased a 25% interest in Alert Medical, LLC, for $207,000. For a compound transaction, if an amount box does not require an entry, leave it blank.
Admitting a New LLC Member With Bonus 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 $33,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $317,000 and $363,000, respectively. a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $406,000. For a compound transaction, if an amount box does not require an entry, leave it blank. 2. Lin purchased a 25% interest in Alert Medical, LLC, for $207,000. For a compound transaction, if an amount box does not require an entry, leave it blank.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
Related questions
Question
Transcribed Image Text:eBook
Print Item
Admitting a New LLC Member With Bonus
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 $33,000. Prior to the revaluation,
the equity balances for Abrams and Lipscomb were $317,000 and $363,000, respectively.
a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry,
leave it blank.
b. Provide the journal entry for the bonus under the following independent situations:
1. Lin purchased a 30% interest in Alert Medical, LLC, for $406,000. For a compound transaction, if an amount box does not
require an entry, leave it blank.
2. Lin purchased a 25% interest in Alert Medical, LLC, for $207,000. For a compound transaction, if an amount box does not
require an entry, leave it blank.
Transcribed Image Text:b. Provide the journal entry for the bonus under the following independent situations:
1. Lin purchased a 30% interest in Alert Medical, LLC, for $406,000. For a compound transaction, if an amount box does not
require an entry, leave it blank.
2. Lin purchased a 25% interest in Alert Medical, LLC, for $207,000. For a compound transaction, if an amount box does not
require an entry, leave it blank.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning