$4.$ Assume the partnership of Erin, Evan and Josh has been in existence for a number of years. Erin decides to withdraw from the partnership when the partners$$ capital balances are as follows:

Partner Capital

Balance Profit and

Loss Ratio

Erin $$65,00030\%$

Evan $30,00040\%$

Josh $40,00035\%$

An appraisal of the business and its property estimates the fair market value to be $$165,000.$ Erin has agreed to receive $$80,000$ in exchange for her partnership interest.

Required:

Prepare the journal entry for the dissolution of Erin's partnership interest, assuming the bonus method is to be applied.Assume the partnership of Erin, Evan and Josh has been in existence for a number of

years. Erin decides to withdraw from the partnership when the partners' capital

balances are as follows:

An appraisal of the business and its property estimates the fair market value to be

$$165,000.$ Erin has agreed to receive $$80,000$ in exchange for her partnership interest.

Required:

Prepare the journal entry for the dissolution of Erin's partnership interest, assuming

the bonus method is to be applied.