Use the Following Information to Answer Questions Bellow All Questions Are Independent of Each Other

Use the following information to answer Questions bellow.
Nunes, Orta and Paulo are partners providing engineering services. Relevant data regarding income-sharing relationships and capital balances are as follows:
$$\begin{array} { | l | c | c | } \hline{ \text { Partner } } & \text { Capital Balance } & \text { IncomeShare } \\\hline \text { Nunes } & \$ 250,000 & 20 \% \\\hline \text { Orta } & 180,000 & 30 \% \\\hline \text { Paulo } & \underline { 150,000 } & 50 \% \\\hline \text { Totals } & \$ 580,000 & 100 \% \\\hline\end{array}$$ All questions are independent of each other.
-Nunes retires and receives $220,000 in cash from the partnership. Partnership net assets are recorded at amounts approximating fair value, except its equipment, currently reported at $500,000, is overvalued. If the partial goodwill approach is used, the equipment account is reduced by:

A) $ 30,000
B) $ 60,000
C) $150,000
D) $100,000