Which of the following transactions or events does not affect the total assets of a partnership? A. A partnership is dissolved and its assets and liabilities are revalued to fair value. B. An old partner retires and his capital balance is settled by the partnership at a lower amount. C. An incoming partner purchases interest from an existing partner. D. A new partner is admitted in a partnership when he invested noncash asset to the partnership.
Which of the following transactions or events does not affect the total assets of a partnership? A. A partnership is dissolved and its assets and liabilities are revalued to fair value. B. An old partner retires and his capital balance is settled by the partnership at a lower amount. C. An incoming partner purchases interest from an existing partner. D. A new partner is admitted in a partnership when he invested noncash asset to the partnership.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 23MCQ
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Which of the following transactions or events does not affect the total assets of a partnership ?
A. A partnership is dissolved and its assets and liabilities are revalued to fair value.
B. An old partner retires and his capital balance is settled by the partnership at a lower amount.
C. An incoming partner purchases interest from an existing partner.
D. A new partner is admitted in a partnership when he invested noncash asset to the partnership.
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