P-F:12-27A Accounting for withdrawal of a partner Learnin Ho-Kim-Ling Design Company is a partnership owned by three individuals. The part- ners share profits and losses in the ratio of 30% to Ho, 40% to Kim, and 30% to Ling, 2. Notes At December 31, 2024, the firm has the following balance sheet. On December 31, Ho withdraws from the partnership. HO-KIM-LING DESIGN COMPANY Balance Sheet December 31, 2024 Assets Liabilities Cash Accounts Receivable, Net Merchandise Inventory Equipment, Net $ 10,000 Accounts Payable $ 87,000 12,000 94,000 Partners' Equity 95,000 Ho, Capital 35,000 Kim, Capital 47,000 Ling, Capital 42,000 Total Partners' Equity 124,000 Total Assets $ 211,000 Total Liabilities and Partners' Equity $211,000 Requirements Record Ho's withdrawal from the partnership under the following independent plans: 1. In a personal transaction, Ho sells her equity to Wei, who pays Ho $120,000 for her interest. Kim and Ling agree to accept Wei as a partner. 2. The partnership pays Ho cash of $10,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest. 3. The partnership pays Ho $65,000 for her book equity. 4. The partnership pays Ho $25,000 for her book equity.