P12-5B Priority Accounting Firm is a partnership owned by three individuals. The partners share profits and losses in the ratio of 28% to Cary Blesh, 38% to Dick McNut, and 34% to Jen Tate. At December 31, 20X2, the firm has the following balance sheet: Cash Accounts receivable: Less allowance for uncollectibles. Building. Less accumulated depreciation. Total assets $ 12,000 Total liabilities............ $ 75,000 $ 22,000 (4.000) $310.000 18,000 Blesh, capital.. 83,000 McNut, capital.. 50,000 (70,000) 240,000 Tate, capital. 62.000 Total liabilities and $270,000 capital... $270,000 McNut withdraws from the partnership on December 31. 20X2. to establish his own consulting practice. Required Record McNut's withdrawal from the partnership under the following plans:

1. McNut gives his interest in the business to Rich Blynn, his nephew. 2. In personal transactions, McNut sells his equity in the partnership to Ashley Napper and Jim Lucks, who each pay McNut $40,000 for half his interest. Blesh and Tate agree to accept Napper and Lucks as partners. 3. The partnership pays McNut cash of $15.000 and gives him a note payable for the remainder of his book equity in settlement of his partnership interest. 4. McNut receives cash of $10,000 and a note for $70,000 from the partnership. 5. The partners agree that the building is worth only $250,000 and that its accumulated depreciation should remain at $70,000. After the revaluation, the partnership settles with McNut by giving him cash of $14.100 and a note payable for the remainder of his book equity.