What balance must be achieved in a withdrawing partner's capital account using the goodwill method?

Using the goodwill method, the balance in a withdrawing partner's capital account should reflect the total amount to be received by that partner upon withdrawal from the partnership. This amount includes the partner's share of any goodwill that may have been generated by the partnership, in addition to their invested capital.

In this case, the final distribution to the withdrawing partner will encompass not only the original investment but also any increase in value through goodwill that reflects the overall partnership's performance. Goodwill is typically considered an intangible asset that represents the excess value beyond identifiable net assets, which could significantly impact the partner's final distribution amount.

Thus, achieving a balance that equals the final distribution ensures that the withdrawing partner receives a fair valuation for their stake in the partnership, considering both their investments and their contribution to the goodwill of the entity.