The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (50% of profits and losses) $ 130,000 Phil (40%) 100,000 Ernie (10%) 115,000 Each of the following questions should be viewed independently.

a. If Sergio invests $150,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

b. If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

c. If Sergio invests $125,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.