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After a partner decides to withdraw from a partnership, which of the following occurs when the withdrawing partner receives more cash than the amount in his or her capital account?

a) The capital accounts must be revalued.

b) The partnership recognizes a gain.

c) The partnership recognizes a loss.

d) The difference in the capital account and the cash paid must be allocated to the remaining partners based on their profit-and-loss-sharing percentages.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9441866

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