The statement of financial position of the FAS partnership at December 31, 2018, appears below:

CASH	$ 400,000	LIABILITIES	$ 80,000
OTHER ASSETS	800,000	F, CAPITAL	280,000
		A, CAPITAL	460,000
		S, CAPITAL	380,000
TOTAL ASSETS	$1,200,000	TOTAL LIABILITIES AND CAPITAL	$1,200,000

Partners F, A, and S share profits and losses 20:30:50, respectively. Each question below is independent of the others. Show all computations.

a. Refer to the above information. Assume Partner S retires from the partnership and receives $420,000 for her capital interest. Prepare the journal entry when S retires and no goodwill is recognized? Use bonus method.

b. Refer to the above information. Assume Partner S retires from the partnership and receives $420,000 for her capital interest. Prepare the journal entry when S retires and Ss goodwill is recognized?