If an Existing Partner Withdraws from a Partnership

question 48

Multiple Choice

If an existing partner withdraws from a partnership,

• A)his or her interest may be sold to the partnership or an individual partner.
• B)the consideration received for that partner's interest may suggest the existence of undervalued existing assets and/or goodwill.
• C)either the bonus or the goodwill method may be used to record the transaction if the partnership acquires the withdrawing partner's interest.
• D)all of the above.

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Definitions:

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