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1. Brandon Tarr invested $64,000 in the Garmon and Miller partnership for ownership equity of $64,000. Prior to the investment, equipment was revalued to a market value of $45,000 from a book value of $33,000. Jordon Garmon and Kali Miller share net income in a 2:1 ratio.
(a) Provide the journal entry for the revaluation of equipment.
(b) Provide the journal entry to admit Tarr.
Tim, a calendar-year cash basis taxpayer, rents property from Andy. On July 1, 2012, Tim pays $24,000 rent for the 24 months ending June 30, 2014. What is the amount of Tim's rent deduction for 2012?
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An asset that cost $14,000 was sold for $9,000 cash. Accumulated depreciation on the asset was $7,000. The entry to record this transaction includes the recognition of, Which would NOT be considered a contingent liability?
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