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Assume the partnership of Dean, Hardin, and Roth has been in existence for a number of years. Dean decides to withdraw from the partnership when the partners' capital balances are as follows:
An appraisal of the business and its property estimates the fair value to be $100,000. Dean has agreed to receive $64,000 in exchange for his partnership interest.
What are the remaining partners' capital balances after Dean's interest is dissolved, assuming the bonus method is applied?
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Increasing Inventory
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