When the Hybrid Method Is Used to Record the Withdrawal

question 22

Multiple Choice

When the hybrid method is used to record the withdrawal of a partner, the partnership

• A) revalues assets and liabilities and records goodwill to the continuing partner but not to the withdrawing partner.
• B) revalues liabilities but not assets, and no goodwill is recorded.
• C) can recognize goodwill but does not revalue assets and liabilities.
• D) revalues assets but not liabilities, and records goodwill to the continuing partner but not to the withdrawing partner.
• E) revalues assets and liabilities but does not record goodwill.