Huang-Kong-Lung Design Company is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to Huang, 40% to Kong, and 30% to Lung. At December 31, 2024, the firm has the following balance sheet. On December 31, Huang withdraws from the partnership.

Requirements
Record Huang’s withdrawal from the partnership under the following independent plans:
1. In a personal transaction, Huang sells her equity to Wo, who pays Huang $145,000 for her interest. Kong and Lung agree to accept Wo as a partner.
2. The partnership pays Huang cash of $5,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest.
3. The partnership pays Huang $80,000 for her book equity.
4. The partnership pays Huang $27,000 for her book equity.

Transcribed Image Text:

Assets Cash Accounts Receivable, Net Merchandise Inventory Equipment, Net Total Assets HUANG-KONG-LUNG DESIGN COMPANY Balance Sheet December 31, 2024 $ 13,000 Accounts Payable 19,000 89,000 70,000 $ 191,000 Liabilities Partners' Equity Huang, Capital Kong, Capital Lung, Capital Total Partners' Equity Total Liabilities and Partners' Equity $ 66,000 32,000 46,000 47,000 125,000 $ 191,000