7 (9.5 marks) year-end financial reporting for the partnership, and Derek announced that he would like HRK LLP, which reports under ASPE. Derek, Gina, and Amin are working on the 2020 Derek Howat, Gina Rosales, and Amin Karem formed a partnership 10 years ago called partner will receive $225,000 in cash for their one-third ownership interest. No to retire as of the year end. The partnership agreement states that upon retirement, a revaluations to partnership assets are required before Derek's withdrawal. Before recording the year-end adjustments for salary, interest, and income, the individual capital accounts of the partners at December 31, 2020, were as follows: $155,000. Capital, Derek $215,000 $130,000 Capital, Gina Capital, Amin HRK LLP had income for 2020 of $86,000 and according to the partnership agreement, profits should be split 2:3:1 between Derek, Gina, and Amin. A salary of $30,000 was paid to Derek during 2020, and interest is accrued on the opening capital balances at 5%. Required: a) Calculate the December 31, 2020, capital balances of each partner prior to Derek's retirement. (4 marks) b) Provide the necessary journal entries to record the withdrawal of Derek from the partnership using the goodwill method. (3.5 marks) c) Provide the necessary journal entries to record the withdrawal of Derek from the partnership using the bonus method. (2 marks)