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