Statement I: If a partner withdraws from the partnership, the partnership must liquidate the withdrawing partner’s ownership equity. Statement II: Dissolution of a partnership entity does not imply liquidation. Oftentimes,the business entity continues its operations undisturbed.
Statement I: If a partner withdraws from the partnership, the partnership must liquidate the withdrawing partner’s ownership equity. Statement II: Dissolution of a partnership entity does not imply liquidation. Oftentimes,the business entity continues its operations undisturbed.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 18MCQ
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accounting for
Statement I: If a partner withdraws from the partnership, the partnership must liquidate the withdrawing partner’s ownership equity.
Statement II: Dissolution of a partnership entity does not imply liquidation. Oftentimes,the business entity continues its operations undisturbed.
Statement III: The net assets of the partnerships remain the same after the admission ofa new partner by purchase of interest
A. False, False, True C. True, False, True
B. False, True, True D. True, True, True
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT