Liquidation of
the if some of the partners can terminate the partnership when the partnership becomes unlawful because of change in law, and partnership engagement is no longer lawful.
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
Connect Access Card for Advanced Financial Accounting
- When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partnersarrow_forwardWhich of the following transactions or events does not affect the total assets of a partnership? An old partner retires and his capital balance is settled by the partnership at a lower amount. A partnership is dissolved and its assets and liabilities are revalued to fair value. An incoming partner purchases interest from an existing partner. A new partner is admitted in a partnership when he invested noncash asset to the partnership.arrow_forwardWhich of the following is the reason to not revalue partnership assets at the date a new partner is admitted to the partnership? A. There has been a change in the ownership B. The partnership has not ceased operations C. All three are reasons to not revalue partnership assets at the date of new partner's admission D. A new legal entity existsarrow_forward
- If a new partner acquires partnership interest directly from the partners rather than from the partnership, a. no entry is required. b. the existing partnership is liquidated. c. the partnership assets should not be revalued because this type of transaction does not result to partnership dissolution. d. the existing partners’ capital accounts are reduced and the new partner’s capital account is increased.arrow_forwardWhich of the following instances does not dissolve the partnership? Group of answer choices Admission of Mr. X in the ANC Partnership. Insanity of a partner in the partnership. Assignment of partners’ interest to another partner. Investment of a new partner in the partnership.arrow_forwardWhich of the following instances does not dissolve the partnership? Group of answer choices a. Admission of Mr. X in the ANC Partnership. b. Assignment of partners’ interest to another partner. c. Insanity of a partner in the partnership. d. Investment of a new partner in the partnership.arrow_forward
- According to the RUPA, a new partner is admitted to a partnership if a majority of the partners consent. TRUE OR FALSE Which of the following refers to the sale of the partnership’s assets during the winding up process? Multiple Choice Destruction. Termination. Dissociation. Elimination. Liquidation.arrow_forwardchoose the response that correctly the following sentence about an individual partner's outside basis in a partnership. a partner's outside basis? (a) can be less than zero, (b) does not change as long as the partner maintains their partnership interest, (c) is used to apply the basis limitation to losses from a partnership, (d) must be tracked by the partnership.arrow_forwardWhich of the following statements regarding partnership is incorrect? a. Changes in the relationship of the partners may dissolve the partnership. b. The contributions of the partners to business are owned by the partnership. c. A partnership has a separate legal identity. d. A partnership is said to have an unlimited life because its legal life of 50 years can be renewed for an indefinite number of renewals.arrow_forward
- Which of the following instances does not dissolve the partnership? Group of answer choices a. Admission of Mr. X in the ANC Partnership. b. Assignment of partners’ interest to another partner. c. Insanity of a partner in the partnership. d. Investment of a new partner in the partnership. Which of the following instances does not dissolve the partnership? Group of answer choices a. Admission of Mr. X in the ANC Partnership. b. Assignment of partners’ interest to another partner. c. Insanity of a partner in the partnership. d. Investment of a new partner in the partnership. When Jill retired from the partnership of Jill, Bill and Hill, the final settlement of her interest exceeded her capital balance. Under the bonus method, the excess Group of answer choices a. Had no effect on the capital balances of Bill and Hill. b. Was recorded as an expense. c. Reduced the capital balance of Bill and Hill. d. Was recorded as goodwill. I. The use of average…arrow_forwardChoose the response that correctly completes the following sentence about an individual partner's outside basis in a partnership. A partner's outside basis: Can be less than zero. Does not change as long as the partner maintains their partnership interest. Is used to apply the basis limitation to losses from a partnership. Must be tracked by the partnership.arrow_forwardNo need to explain. The following events dissolve a partnership except: a. admission of a partner b. change of the partnership name c. conversion of a partnership to a corporation d. impairment of partnership assets Before dissolution takes effect, liabilities should be restated at their a. fair market values b. present values c. liquidating values d. historical valuesarrow_forward