The partnership of Matteson, Richton, and O'Toole has existed for a number of years. At the present time, the partners have the following capital balances and profit and loss sharing percentages: Partner Matteson Richton O'Toole Capital Balance $ 78, 750 131,250 110,000 Profit and Loss Percentage 35 45 20 O'Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the partnership as a whole is worth $620,000. Regarding the individual assets, the appraiser finds that a building with a book value of $190,000 has a fair value of $240,000. The book values for all other identifiable assets and liabilities are the same as their appraised fair values. Accordingly, the partnership agrees to pay O'Toole $140,000 upon withdrawal. Matteson and Richton, however, do not wish to record any goodwill in connection with the change in ownership. Prepare the journal entry to record O'Toole's withdrawal from the partnership. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Accordingly, the partnership agrees to pay O'Toole $140,000 upon withdrawal. Matteson and Richton, however, do not wish to record any goodwill in connection with the change in ownership. Prepare the journal entry to record O'Toole's withdrawal from the partnership. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 1 50,000 Building Matteson, Capital Richton, Capital O'Toole, Capital 17,500 22,500 10,000 2 2 O Toole, Capital Matteson, Capital Richton, Capital Cash 120,000 8,679 11,321 140,000