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When a Partner Retires from a Partnership and the Retiring

Question 8

Multiple Choice

When a partner retires from a partnership and the retiring partner is paid more than the capital balance in her account,which of the following explains the difference?
I.The retiring partner is receiving a bonus from the other partners.
II.The retiring partner's goodwill is being recognized.


A) I only
B) II only
C) Either I or II
D) Neither I nor II

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