Individuals T, U, and V Formed the Calendar Year Trio

question 15

Multiple Choice

Individuals T, U, and V formed the calendar year Trio Partnership in 1981 as equal partners.On June 2, 2012, T died and his interest was inherited by his grandson G, whom U and V welcomed as a new equal partner in their business.On November 13, 2012, V sold his interest to individual B.On January 19, 2013, B sold this same interest to Corporation C.Which of the following statements is accurate?

• A)The original Trio partnership is still in existence for federal tax purposes.
• B)The original Trio partnership terminated for federal tax purposes on June 2, 2012 because T's death dissolved the partnership under state law.
• C)The original Trio partnership terminated for federal tax purposes on November 13, 2012.
• D)The original Trio partnership terminated for federal tax purposes on December 31, 2012.
• E)The original Trio partnership terminated for federal tax purposes on January 19, 2013.

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead allocated to production, based on changes in the volume of goods produced.

Standard Labor Hours

The predetermined amount of time expected to be required to complete a unit of production under normal conditions.

Overhead

Indirect costs or expenses related to the production process or operational activities of a business that are not directly tied to a specific product or service.

Controllable Variance

Controllable variance refers to the difference between actual costs and the expected costs that can be controlled or influenced by a manager.