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An outright sale of a partnership amounts to the


Question

An outright sale of a partnership amounts to the

Options

A) compensation of vendors by the purchase

B) admission of a new partner

C) purchase of rights of a dead partner

D) change of sharing ratio of vendors

The correct answer is D.

Explanation:

An interest in a partnership or joint venture is treated as a capital asset when sold. The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss.


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Dicussion (1)

  • An interest in a partnership or joint venture is treated as a capital asset when sold. The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss.

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