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:

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 $$600,000.$ Regarding the individual assets, the

appraiser finds that a building with a book value of $$180,000$ has a fair value of $$220,000.$ 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 $$120,000$ 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.