The partnership of Matteson, Richton, and OToole 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	Capital Balance			Profit and Loss Percentage
Matteson	$	120,350			30	%
Richton		169,650			50
OToole		150,000			20

OToole 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 partners 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 $700,000. Regarding the individual assets, the appraiser finds a building with a book value of $230,000 has a fair value of $320,000. The book values for all other identifiable assets and liabilities are the same as their appraised fair values.

Accordingly, the partnership agrees to pay OToole $220,000 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 OTooles withdrawal from the partnership