In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according to a. the final balances in partner capital accounts. b. the partners' relative share of the gain or loss on liquidation. c. the partners' relative profit and loss sharing ratio. d. safe payment computations.

In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according to a. the final balances in partner capital accounts. b. the partners' relative share of the gain or loss on liquidation. c. the partners' relative profit and loss sharing ratio. d. safe payment computations.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 1BD

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