Castelo, a partner in BRC Partnership, assigns his partnership interest to Serrano, who is not made a partner. After the assignment, Serrano asserts the right to I - Participate in the Management of BRC. II - Castelo’s partnership profits Serrano is correct to which of the rights?
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Castelo, a partner in BRC
I - Participate in the Management of BRC.
II - Castelo’s partnership profits
Serrano is correct to which of the rights?
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- Any assets invested by a particular partner in a partnership ________. A. do not become a partnership asset but instead remain with the partner B. can be used only by the investing partner C. become the property of all the partners D. are the basis for all profit sharingCastelo, a partner in BRC Partnership, assigns his partnership interest to Serrano, who is not made a partner. After the assignment, Serrano asserts the right to I - Participate in the Management of BRC. II - Castelo’s partnership profits Serrano is correct to which of the rights? neither I nor II I and II I only II onlyThe General Partnership form of organization is subject to tax at the business level and again at the ownership level after profits are distributed to the General Partners. Select one: O True False
- Generally, gain is not recognized on contribution of appreciated property to a partnership. Which of the following situations may be an exception to that general rule? PICK ALL THAT APPLY!!! Question 1 options: The contributing partner contributes appreciated property to the partnership and shortly after receives a large distribution of cash from the partnership so that most of the partner's interest in the partnership is liquidated. The exchange appears to essentially be a partial sale of the property through the partnership form. The partner contributes appreciated property to a partnership and the partner is not in control of the partnership (over 50% ownership). A partner receives a capital interest for services performed for the partnership. The partner contributes a property to the partnership that is encumbered by a recourse liability, the partnership assumes the liability, and the net effect of these is to take…Which of the following is an element of the requirement that partnership allocations must have substantial economic effect? If an allocation of income, loss, or deduction is made for tax purposes, a similar allocation must be made for partnership book purposes so the partner's capital account (and rights to partnership capital) reflect a corresponding increase or decrease. Liquidations must be made in accordance with partner's capital accounts and a partner with a negative capital account must have the obligation to restore the capital account deficit in case of liquidation. Even if corresponding allocations are made for tax purposes and book purposes, those allocations must be made for economic reasons independent of minimizing taxes based on the partners' individual tax situations. All of these are elements of substantial economic effect5. Castelo, a partner in BRC Partnership, assigns his partnership interest to Serrano, who is not made a partner. After the assignment, Serrano asserts the right to I - Participate in the Management of BRC. II - Castelo’s partnership profits Serrano is correct to which of the rights? Group of answer choices I only II only neither I nor II I and II
- choose 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.If there is partnership deed, then which one of the following will apply? a. Interest on capital is not allowed b. Partners are not entitled to bonus c. Interest will be charged on drawings d. Partners are not entitled to salaryfile a case against a partnership, without impleading the partners and the partnership is then held liable by the court, will the partners' If you personal assests be also held liable, if the partnerships assets are insufficient?
- I. In fairness to the existing partner and to the partner to be admitted, asset revaluation is to be undertaken before a new partner is admitted. II. To be a partner in an existing partnership one must buy the equity (whole or in part) of an existing partner. Group of answer choices ONLY THE 1ST STATEMENT IS TRUE BOTH STATEMENTS ARE FALSE BOTH STATEMENTS ARE TRUE ONLY THE 1ST STATEMENT IS FALSEChoose 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.A, one of the partners in the ABC Partnership, decided to buy the share of B in the partnership. Which of the following statements is not true? O There is no need to revise the partners' equity. O Partners' equity in total amount will not change. O Partnership assets will remain the same. O Partnership profit and loss ratio will change.