In applying the Sec. 318 attribution rules to a stock redemption, the stock of a partnership is only deemed to be proportionately owned by the partner when the partner owns more than 50% of the partnership interest. Question 10 options: True False
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
In applying the Sec. 318 attribution rules to a stock redemption, the stock of a partnership is only deemed to be proportionately owned by the partner when the partner owns more than 50% of the partnership interest.
Question 10 options:
| True | |
| False |
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