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The partnership of PP, QQ, and RR shared profits and losses equally. When PP withdraw from the partnership, the partner agreed that there was unrecorded
The partnership of PP, QQ, and RR shared profits and losses equally. When PP withdraw from the partnership, the partner agreed that there was unrecorded goodwill in the partnership. Under the bonus method, the capital balances of QQ and RR were:
Select one:
a.
Each reduce by one-half of the total amount of the unrecordedgoodwill.
b.
Each reduce by one-half of PP's share of total amount of the unrecorded goodwill.
c.
Not affected.
d.
Each reduce by one-third of the total amount of the unrecorded goodwi
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