The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:

Tiger (50%) $ 145,000

Phil (30%) 115,000

Ernie (20%) 130,000

Each of the following questions should be viewed independently.

A. If Sergio invests $180,000 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 $125,000 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 $135,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.