Retiring partner's settlement in equal profit-sharing partnership Steps:

• Revalue net assets: $30,000 +$9,000 = $39,000.
• X's entitlement: 50% share = $19,500.
• Cash paid to X: half of $19,500 =$9,750.
• Net assets remaining: $39,000 -$9,750 = $29,250 (rounded to$29,000 in options).

Why C is correct:

• In partnerships, retiring partner's amount due equals profit share of revalued net assets; cash payment is half that amount, reducing net assets by only the cash outflow (loan liability treated as ongoing funding, not immediate deduction).

Why the others are wrong:

• A: Half of revalued net assets ($19,500 rounded down), ignores cash payment detail.
• B: Y's implied original capital ($30,000 -$7,000), ignores revaluation and settlement.
• D: Revalued net assets ($39,000) minus small adjustment (e.g., half X's original capital), overstates by not deducting full cash paid.

Final answer: C