2. When Andrew Davis retired from Davis, Evans & Fell LLP, he received cash in excess of his capital account balance. Under the bonus method, the excess cash received by Davis:

a. Reduced the capital account balances of Evans and Fell.

b. Had no effect on the capital account balances of Evans and Fell.

c. Was recognized as goodwill of the partnership.

d. Was recognized as an operating expense of the partnership.