Tina Ward decided to withdraw from a partnership in which she had a 40% interest...
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Accounting
Tina Ward decided to withdraw from a partnership in which she had a 40% interest in profits and losses. This event resulted in the recognition of goodwill and a $100,000 payment to Ward in final settlement. The sum of the partners capital balances before recognition of goodwill and the withdrawal of Ward was $200,000. After the withdrawal of Ward, the sum of the partners capital balances (excluding goodwill) was $120,000. What was the total goodwill?
$200,000
$120,000
$50,000
$20,000
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