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  3. on january 31, 2020, amy reid withdrew from reid,

On January 31, 2020, Amy Reid withdrew from Reid, Sayle & Todd LLP, whose partners...

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Accounting

On January 31, 2020, Amy Reid withdrew from Reid, Sayle & Todd LLP, whose partners had an income-sharing ratio of 40%, 35%, and 25%, respectively, for a cash payment of $121,000, despite Reid's having a capital account balance of $100,000 on that date. The preferable method of accounting for Reid's withdrawal includes a:

Select one:

a.

$21,000 debit to Goodwill

b.

$5,250 debit to Todd, Capital

c.

$120,000 debit to Amy Reid, Capital

d.

$52,500 debit to Goodwill

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