The partnership of Milan Mets, Paul Peters, and Ryanne Ross shared profits and losses equally....

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Accounting

The partnership of Milan Mets, Paul Peters, and Ryanne Ross shared profits and losses equally. When Mets withdrew from the partnership, the partners agreed that Met's interest exceeded Met's capital balance. Under the bonus method, the capital balances of Peters and Ross were

Not affected.

Each reduced by one-half of the total amount paid to Mets in excess of Met's capital balance.

Each reduced by one-third of the total amount paid to Mets in excess of Met's capital balance.

Each reduced by one-half of the unrecorded goodwill.

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