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John, Susan, and Carl each have a $200,000 capital balance. They share profits and losses as follows: 1:2:1 to John, Susan, and Carl, respectively. Suppose Carl is withdrawing from the business, and the partners agree that no appraisal of assets is needed.
Requirements
1. Journalize the withdrawal of Carl if the partnership agrees to pay Carl $200,000 cash.
2. Journalize the withdrawal of Carl if the partnership agrees to pay Carl $140,000 cash.
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