Bush and Carter are partners in an automobile repair business. Their respective capital balances are $425,000 and $275,000, and they share profits in a 3:1 ratio. Because of growth in their repair business, they decide to admit a new partner. Gore is admitted to the partnership, after which Bush, Carter and Gore agree to share profits in a 3:1:2 ratio.

Required: Prepare the necessary journal entries to record the admission of Gore in each of the following independent situations:

A. Gore purchases 20% of the capital interest of Bush. Bush receives $100,000 directly from Gore.

B. Gore invests $200,000 for a one-fifth capital interest. The bonus method is to be used.

C. Gore invests $200,000 for a 30% capital interest. The goodwill method is to be used.