E12-8 Eve Bermuda is retiring from the partnership of Bermuda. Rye, and Augustine on May 31. The partner capital balances are Bermuda. $36.000: Rye, $51,000; and Augustine. $22,000. The partners agree to have the partnership assets revalued to current market values. The independent appraiser reports that the book value of the inventory should be decreased by $12,000, and the book value of the land should be increased by $32,000. The partners agree to these revaluations. The profit-and-loss ratio has been 5:3:2 for Bermuda, Rye, and Augustine, respectively. In retiring from the firm, Bermuda receives $25,000 cash and a $25,000 note from the partnership. Required Journalize

(a) the asset revaluations, and

(b) Bermuda's withdrawal from the firm.