Match the Following Independent Distribution Payments in Liquidation of a Partner's

question 102

Multiple Choice

Match the following independent distribution payments in liquidation of a partner's interest in an ongoing partnership with the statements below.
-Distribution of $60,000 cash for a partner's share of unrealized receivables when the partner is a limited partner and most of the partnership's income is derived from services.

• A)A payment for the partner's share of partnership income under § 736a).
• B)A payment for the partner's share of partnership property under § 736b).
• C)The payment includes both a § 736a) and a § 736b) element.

---

Definitions:

Face Value

The original cost of a bond or the principal balance to be paid back at maturity, excluding interest.

Market Interest Rate

The prevailing rate at which interest is charged on loans and bonds in the broader financial market.

Bond Yield

The return an investor realizes on a bond, calculated by the coupon payments relative to the market price of the bond.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock, representing its worth at issuance or maturity.