Frasier,Niles,and Daffney are partners in the Lots A Laughs Company and share profits and losses in a ratio of 3:2:1,respectively.Frasier retires and is bought out by his partners.The partners' current capital account balances,after closing entries,are $147,000,$98,000,and $49,000,respectively.The new net income agreement for Niles and Daffney will be 1:3.
Prepare entries for the following transactions involving the retirement of Frasier.Round to the nearest dollar if necessary.
a_The partners agree to revalue the assets.Land with a cost of $90,000 has a current market value of $120,000.Inventory with a cost of $50,000 has a current market value of $35,000.
b_After the assets are revalued,the partnership agrees to give Frasier $75,000 cash and a note payable for $65,000.

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The Answer of Frasier,Niles,and Daffney are partners in the Lots A Laughs Company and share profits and losses in a ratio of 3:2:1,respectively.Frasier retires and is bought out by his partners.The partners' current capital account balances,after closing entries,are $147,000,$98,000,and $49,000,respectively.The new net income agreement for Niles and Daffney will be 1:3.
Prepare entries for the following transactions involving the retirement of Frasier.Round to the nearest dollar if necessary.
a_The partners agree to revalue the assets.Land with a cost of $90,000 has a current market value of $120,000.Inventory with a cost of $50,000 has a current market value of $35,000.
b_After the assets are revalued,the partnership agrees to give Frasier $75,000 cash and a note payable for $65,000.

Frasier,Niles,and Daffney Are Partners in the Lots a Laughs Company