One partner buys out another = Schedule D for the selling partner. The partnership is not receiving or expensing any of the $40,000.
The exiting partner should not have any equipment, it should be owned by the partnership.
The exiting partner may have goodwill, but the partnership should really own the goodwill of the business.
You may find https://www.irs.gov/newsroom/questions-and-answers-about-technical-terminations-internal-revenue-cod... of interest.