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

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?

Cash $ 400,000 800,000 Other Assets Liabilities F, Capital A, Capital S, Capital Total Liabilities and Capital $ 80,000 280,000 460,000 380,000 $1,200,000 Total Assets $1,200,000