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: Cash $450,000 Accounts payable $175,000 Accounts receivable 210,000 Loan payable 420,000 Inventory of parts 120,000 Capital - Decker 250,000 Equipment, net 300,000 Capital - Groth 150,000 Building, net 210,000 Capital - Farmer 225,000 Land 90,000 Capital - Wang 25,000 Capital - Lux 135,000 Total assets $1,380,000 Total liabilities and capital $1,380,000 All partners agreed that Decker should receive $287,500 for his interest in the business and Groth should receive $187,500. Farmer proposed the bonus method for recording the retirements. Wang objects to this method and suggests the partial goodwill approach. Required (a) Prepare the journal entry to record the retirements under the bonus method. (b) Prepare the journal entry to record the retirements under the partial goodwill approach. (c) Why does Wang object to the bonus method of accounting? (d) Regardless of the accounting method employed, what immediate problem for the business can you identify at the time of retirement?