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Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, 97,000; McLean, $95.000; and Lux, S160.000. The partners
Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, 97,000; McLean, $95.000; and Lux, S160.000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare general journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $181,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman). b. McLean gives his interest to a son-in-law. Park. Gale and Lux accept Park as a partner. C. McLean is paid $95.000 in partnership cash for his equity. d. McLean is paid $ 145,000 in partnership cash for his equity. e. McLean is paid $40,250 in partnership cash plus machinery that is recorded on the partnership books at S128,000 less accumulated depreciation of $96,000
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