If Goodwill Is Suggested by the Consideration Paid to a Withdrawing

question 44

Multiple Choice

If goodwill is suggested by the consideration paid to a withdrawing partner,

• A)only the goodwill traceable to the withdrawing partner may be recorded.
• B)goodwill traceable to the original partnership is allocated among the partners according to their respective interests in capital.
• C)the goodwill traceable to the withdrawing partner represents the difference between the partner's capital balance and the consideration he or she receives.
• D)none of the above.

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