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Long term partners, Pop, Ping and Pam have capital balances of $60,000, $45,000 and $30,000, respectively. They share in profits and losses 50%-to-30%-to-20%, respectively. All assets are valued fairly. Pam decides to retire from the partnership. Calculate the remaining partner's capital balances after Pam withdrawls under the following situations.
a. Pam sells the interest to Ping for $25,000.
b. Pam sells the interest to the partnership for $25,000; bonus method used.
c. Pam sels the interest to the partnership for $40,0000; goodwill attributable only to the exiting partner is recorded.
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