3. Able and Baker have had a successful partnership, but now Able wants to retire. Account balances after restating the assets and liabilities for the partnership are below. Tangible assets $150,000 Liabilities 30,000 Able, Capital 50,000 Baker, Capital 70,000 Able and Baker's residual profit and loss ratio is 40:60 A. Able sells her equity to Cab for $75,000 and Baker accepts him as a partner. Record the withdrawal of Able from the partnership and the admission of Cab Particulars Debit Credit Able, Capital 50,000 Cab. Capital 50,000 Able, Capital (50 x 0.5) 25.000 Baker, Capital (70 x 0.5) 35,000 Cab, Capital 60,000 B. Able and Baker sell 50 percent of their equity to Cab for $50,000 each Particulars Debit Credit Cash 50,000 Able, Capital 400 Baker, Capital 600 Cab, Capital 51,000 Cash 50,000 Goodwill 1,429 Cab, Capital 51,429 5. Refer to the information in Exercise 3. Assume Cab is willing to pay $75,000 for a 30 percent equity interest. Record the admission using the A. Bonus method B. Goodwill method 3. Able and Baker have had a successful partnership, but now Able wants to retire. Account balances after restating the assets and liabilities for the partnership are below. Tangible assets $150,000 Liabilities 30,000 Able, Capital 50,000 Baker, Capital 70,000 Able and Baker's residual profit and loss ratio is 40:60 A. Able sells her equity to Cab for $75,000 and Baker accepts him as a partner. Record the withdrawal of Able from the partnership and the admission of Cab Particulars Debit Credit Able, Capital 50,000 Cab. Capital 50,000 Able, Capital (50 x 0.5) 25.000 Baker, Capital (70 x 0.5) 35,000 Cab, Capital 60,000 B. Able and Baker sell 50 percent of their equity to Cab for $50,000 each Particulars Debit Credit Cash 50,000 Able, Capital 400 Baker, Capital 600 Cab, Capital 51,000 Cash 50,000 Goodwill 1,429 Cab, Capital 51,429 5. Refer to the information in Exercise 3. Assume Cab is willing to pay $75,000 for a 30 percent equity interest. Record the admission using the A. Bonus method B. Goodwill method