Retirement: Bonus and Goodwill Calculations Ellery Stevens, senior partner in a rapidly growing local CPA firm, has decided to retire. His share in the firm’s profits and losses is 25 percent and his capital account has a balance of $180,000. Total capital of the firm is $800,000. Under the partnership agreement, Stevens will receive $300,000 upon retirement. Required a. Calculate the bonus to Stevens and the total capital of the firm after Stevens’ retirement. Amount Stevens' bonus Answer Total capital of firm after Stevens' retirement Answer b. Prepare the journal entries to record Stevens’ retirement, if the partial goodwill approach is used. Description Debit Credit Answer Answer Answer Answer Answer Answer To record partial goodwill. Answer Answer Answer Answer Answer Answer To record retirement payment to Stevens. c. Calculate the amount of goodwill recognized if the total goodwill approach is used. Prepare the journal entries to record Stevens’ retirement using the total goodwill approach. Description Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To record total goodwill. Answer Answer Answer Answer Answer Answer To record retirement payment to Stevens. Check