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B. Cates, V. Elder, and S. Nguyen have capital balances of $50,000, $40,000, and $32,000, respectively. Their income ratios are 5 : 3 : 2. Nguyen withdraws from the partnership under each of the following independent conditions.
1. Cates and Elder agree to purchase Nguyen's equity by paying $17,000 each from their personal assets. Each purchaser receives 50% of Nguyen's equity.
2. Elder agrees to purchase all of Nguyen's equity by paying $22,000 cash from her personal assets.
3. Cates agrees to purchase all of Nguyen's equity by paying $26,000 cash from her personal assets.
Instructions
Journalize the withdrawal of Nguyen under each of the assumptions above.
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