A bonus to a departing partner maybe paid if there is unrecorded goodwill resulting from the partnership's superior earnings record.

Question

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When a partnership has unrecorded goodwill due to superior earnings or other factors, a departing partner may be compensated with a bonus for their share of the goodwill, even though it hasn't been formally recorded on the partnership's books.

A Bonus to a Departing Partner Maybe Paid If There