Bob, Kara, and Mark Are Partners in the BKM Partnership

question 98

Multiple Choice

Bob, Kara, and Mark are partners in the BKM Partnership. Bob is a 40% partner and has a June 30 tax year- end. Kara owns a 40% interest in the partnership and has a September 30 tax year- end, and Mark owns the remaining 20% interest and has an October 31 tax year- end. The partnership does not have a natural business year. What is the required tax year- end for the partnership (if no Sec. 444 election is made) ?

• A) October 31
• B) June 30
• C) September 30
• D) December 31

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Definitions:

Parol Evidence

A rule that prevents parties to a written contract from presenting extrinsic evidence of terms that would contradict, modify, or vary the contractual terms written in the document.

UCC Statute of Frauds

A section of the Uniform Commercial Code that requires certain types of contracts, such as those for the sale of goods over a certain value, to be in writing to be enforceable.

Specially Manufactured Goods

Items that are produced to a buyer's personal specifications, which are not suitable for sale to others in the ordinary course of the seller's business.

Promissory Estoppel

A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.