A, B, and C show the below balance sheet for December 31, 2019.

A, B, and C allocate profits 30%, 30%, 40%.

The partnership agrees to pay Charlie 200,000 to retire.

Assets Equity

Cash50,000 A, Capital100,00030%

Marketable Securities80,000 B, Capital175,00030%

Inventory30,000 C, Capital135,00040%

Land100,000

Building, net150,000

Total Assets410,000 Total Equity410,000

1.Using the bonus method, show the journal entry to retire Charlie with the $200,000 payment.

2.Using the goodwill method only to Charlie, show the journal entry to retire Charlie with the $200,000 payment.