The AB, BC, and CD Partnerships Merge into the ABCD

question 40

Multiple Choice

The AB, BC, and CD Partnerships merge into the ABCD Partnership. AB (owned by Austin and Ben) contributes assets worth $100,000. BC (owned by Ben and Charlie) contributes assets worth $200,000. CD (owned by Charlie and Dennis) contributes assets worth $300,000. The capital and profits interest in ABCD is owned by: Austin, 10%; Ben, 30%; Charlie, 25%; and Dennis, 35%. ABCD Partnership is a continuation of

• A)AB.
• B)BC.
• C)CD.
• D)none of the partnerships.

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Definitions:

Occupations

Various types of jobs or professions in which individuals engage to earn a living.

Economic Principle

A widely accepted generalization about the economic behavior of individuals or institutions.

Resource Pricing

The determination of the price of resources or inputs used in production, based on factors like scarcity, demand, and cost of extraction.

Occupations

Various forms of employment or professions where individuals earn a living by performing specific tasks or services.