William, Halima, and June are partners with capital balances of $180,000, $50,000, and $100,000, respectively. The partners share profit and losses evenly. Due to a disagreement with her partners, June decided to leave the partnership and receives a payout of $140,000 cash. The partnership assets are revalued prior to Junes departure, and the land and building were found to have fair values in excess of their book values, as follows:

	Net book value	Fair value
Land	$120,000	$150,000
Building	$370,000	$385,000

Assuming the partnership uses the revaluation/goodwill method and reports using IFRS, what amount of goodwill is recorded on Junes withdrawal?

Question 6 options:

a)

$40,000

b)

$75,000

c)

$45,000

d)

$345,000