Moe, Edita, and Hunter have been operating a business together as partners without a partnership agreement for several years. Hunter unexpectedly passes away, what will most likely become of the partnership? A. The partnership will be immediately dissolved B. Hunter’s interest will automatically be divided between Moe and Edita C. Moe and Edita will need to find a new partner to take Hunter’s place D. Moe and Edita will be able to purchase Hunter’s interest from his estate

Moe, Edita, and Hunter have been operating a business together as partners without a partnership agreement for several years. Hunter unexpectedly passes away, what will most likely become of the partnership? A. The partnership will be immediately dissolved B. Hunter’s interest will automatically be divided between Moe and Edita C. Moe and Edita will need to find a new partner to take Hunter’s place D. Moe and Edita will be able to purchase Hunter’s interest from his estate

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter10: Partnership Taxation

Section: Chapter Questions

Problem 15MCQ

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Jun and Ramon are partners in a real estate partnership. The partnership owns a piece of land which Generoso desired to buy. Generoso contacted Jun and inform him his desire to buy the land and Jun did not tell Ramon about it. Jun bought Ramon out of the partnership and afterwards sold the land to Generoso with a big profit. @ The sale of the land to Generoso is void because it was without the knowledge of Ramon O The partnership is dissolved when Jun became the sole owner O Jun is not liable to Ramon for the latter's share in the profits O Jun is liable to Ramon for the lalter's share in the profits Next Previous
2. D, E and F entered into a partnership to operate a restaurant business. When the restaurant had gone past break-even stage and started to garner considerable profits, F died. D and E continued the business without dissolving the partnership. They in fact opened a branch of the restaurant, incurring obligations in the process. Creditors started demanding for the payment of their obligations. Who are liable for the settlement of the partnership’s obligations?
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