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here were going to be looking at a partner withdrawal or the retirement of a partner from a partnership here and the withdrawal or the retirement of a partner may involve two different cases here so case one thats the transaction with the existing partners or a new partner now the existing partner or the new partner directly buys out the partner thats withdrawing or retiring and then case two the transaction with a partnership entity now the partnership entity is buying out the partner thats retiring or withdrawing here so well start here with case one where the equity of the withdrawing partner is purchased with the personal assets here thats the key here of the existing or a new partner rather than with the assets of the partnership itself so these existing partners or these new partners deal directly with the partner here thats being bought out here so lets go look at our example here we have a partner a a partner B in a partner C and each has a capital balance here and for