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The book values for all other identifiable assets and liabilities are the same as their appraised truthful values. Appropriately, the partnership agrees to pay for O’Toole $120,000 upon withdrawal. Matteson and Richton, on the other hand, do not want to file any goodwill in reference to the improve in possession.
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d. Use precisely the same information as in prerequisite ( c ) except that the entrance in the partnership is recorded via the goodwill technique.