Portney, Gray, and Ross are partners with principal balances of $80,000, $200,000, and $120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Gray decided to retire and the company revalued its assets. The value of the inventory decreased by $20,000 and the value of the land increased by $50,000. Portney and Ross then agreed to pay Gray $230,000 for his withdrawal from the partnership.

Required :

Prepare the journal entry to record the retirement of Gray under the

A. bonus method.

B. full goodwill method.