Following is a balance sheet for the partnership business of Amy, Lucy, and John: Assets Amount ($) Liabilities & Equity Amount ($) Cash 50,000 A/P Inventory 45,000 N/P 10,000 50,000 Land 60,000 Amy's Capital 130,000 Building 230,000 Lucy's Capital 80,000 Acc. Dep. 60,000 170,000 John's Capital 55,000 Total 325,000 Total 325,000 The profit and loss sharing ratio between Amy, Lucy, and John was 2:1:1 respectively. Suppose John is retiring during the year. The appraisal of assets shows that current market value of inventory is $35000, while land valued at $92000. Required: Record the journal entries for appraisal of assets and John's retirement if: A. He received $35000 in cash and a note payable of $55000. B. He received $60000 in cash.