Question

During the dissolution of a partnership that will be continued by the remaining partners, if a noncontinuing partner holds 20% of the partnership in which the assets are valued at $10,000 how much will the partner receive assuming the noncontinuing partner has taken no wrongful action against the partnership?a. 2,000b. 2,000 minus any losses the noncontinuing partner's leaving caused the partnership to sustain.c. 2,000 minus the noncontinuing partner's share of loses, if any, in the first year after dissolution.d. 2,000 minus the noncontinuing partner's share of expenses involved with dissolution.e. Nothing

Answer 1

Answer:

A

Explanation:

Amount non continuing partner with receive = 20% of $10,000 = 20/100 × $10,000 = $2000

It is assumed the noncontinuing partner has taken no wrongful action against the partnership, this means he or she did not incur any loss.

The noncontinuing partner will receive $2000