Candace Heraghty, Joe Chew, and Chris Kilgour have run a successful partnership for a number of years, sharing income 3:2:1, respectively. On December 31, Joe Chew decided to leave the partnership. After the assets of the partnership have been adjusted to current market values, the capital balances of Heraghty, Chew, and Kilgour are as follows:

Candace Heraghty, Capital ....................... $122,000

Joe Chew, Capital ...........................................86,000

Chris Kilgour, Capital .....................................54,000

Provide the journal entry for Chew's departure under the following independent situations:

a. Heraghty and Kilgour agree to each pay Chew $40,000 for equal rights to his partnership share.

b. Heraghty and Kilgour agree to each pay Chew $50,000 for equal rights to his partnership share.