Retirement of Two Partners Thirty years ago, five mechanics formed a partnership and established an automobile repair shop. Two of the partners, Decker and Groth, are now retiring. The other three partners, Farmer, Wang, and Lux, are continuing the partnership. The original agreement called for an equal division of income. The remaining partners plan to continue this arrangement. The following balance sheet is prepared for the partnership as of the retirement date: $104,000 Cash Accounts payable $144,000 Accounts receivable 128,000 Loan payable 64,000 Inventory of parts Equipment, 64,000 Capital - Decker 80,000 net 144,000 Capital - Groth 64,000 Building, net Land 48,000 40,000 Capital - Farmer 112,000 Capital - Wang 12,000 Capital - Lux 52,000 Total assets $528,000 Total liabilities and capital $528,000 All partners agreed that Decker should receive $100,000 for his interest in the business and Groth should receive $80,000. Farmer proposed the bonus method for recording the retirements. Wang objects to this method and suggests the partial goodwill approach.