He-Kung-Liu Oriental Design is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to He, 40% to Kung, and 30% to Liu. At December 31, 2012, the firm has the following balance sheet:

He withdraws from the partnership on December 31, 2012, to establish her own medical practice.
Requirements
Record He's withdrawal from the partnership under the following plans:
1. In a personal transaction, He sells her equity to Win, who pays He $100,000 for her interest. Kung and Liu accept Win as a partner.
2. The partnership pays He cash of $25,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest.
3. The partnership pays He cash of $70,000.
4. The partners agree that the equipment is worth $165,000 and that accumulated depreciation should remain at $39,000. After the revaluation, the partnership settles with He by giving her cash of $25,000 and inventory for the remainder of her bookequity.

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HE-KUNG-LIU ORIENTAL DESIGN Balance Sheet December 31, 2012 Assets Liabilities Cash Accounts receivable s 17,000 Accounts payable $108,000 $ 20,000 Less: allowance for uncollectibles 4,00016,000 92,000 Owners' equity Inventory Equipment 35,000 50,000 43,000 $236,000 Total liabilities and owners' equity $236,000 150,000 He, capital Kung, capital Less: accumulated depreciation 39,000 111,000 Liu, capital Total assets