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f Glass, Falk, and Fayed had a partnership that splits profits and losses equally. Fayed decided to withdraw from the partnership. Partnership assets were revalued
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Glass, Falk, and Fayed had a partnership that splits profits and losses equally. Fayed decided to withdraw from the partnership. Partnership assets were revalued and partner capital balances were adjusted to the following amounts: Glass $100,000 Falk $115,000 Fayed $90,000 Due to a set of unusual legal circumstances, it was mutually agreed that the partnership would settle with Fayed for a cash payment of $100,000. Which of the following statements accurately describes the transaction? The remaining partners' capital accounts we Febited for $5,000 each. The remaining partners' capital accounts were credited $5,000 each. The withdrawing partner's account was debited for $100,000. The withdrawing partner's capital account was credited for $90,000 Step by Step Solution
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