E 16-21 Partnership retirement—Various situations The Cas, Don, and Ear partnership balance sheet and profit and loss percentages at June 30, 2016, are summarized as follows:

Assets $500,000 Cas capital (30%) $140,000 Don capital (30%) 175,000 Ear capital (40%) 185,000

$500,000 $500,000 On July 1, 2016, the partners agree that Cas is to retire immediately and receive $161,000 for her partnership interest.

REQuIRED: Prepare journal entries to illustrate three possible methods of accounting for the retirement of Cas.

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