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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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.