A Partnership Has Three Partners, Bell, Casey and Duffy, with Capital

A partnership has three partners, Bell, Casey and Duffy, with capital balances of $50,000, $60,000, and $70,000 respectively. The partners share income equally. Duffy retires and is paid using the personal assets of Bell and Casey. Which statement is true concerning the accounting for this transaction?

A) Bell and Casey are required to pay Duffy equal amounts of personal assets, as specified in their income-sharing agreement.
B) Recognition of goodwill is unlikely since there is no arm's-length transaction.
C) Bell and Casey are required to pay Duffy a total of $70,000.
D) If the total paid to Duffy is more than $70,000, implied goodwill is recognized.