Changes in Partnership Ownership Are Presumed to Be Arm's Length

question 22

Multiple Choice

Changes in partnership ownership are presumed to be arm's length transactions that may require which of the following actions?

• A)recognitions of goodwill to existing partners
• B)revaluation of existing partnership assets
• C)recognition of goodwill or other intangible assets attributable to the incoming partner
• D)all of the above are possible

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Definitions:

Shift

A change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at any given price.

Capital Stock

The total amount of physical goods that are used for production of other goods and services.

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Increase

An upward change or growth in a quantity or value.