Leonard,Ted,and Julius Are Partners at Jutle Associates

question 48

Multiple Choice

Leonard,Ted,and Julius are partners at Jutle Associates.They signed a two-year lease agreement with Property Company for business purposes.Five months into the new agreement,Leonard dissociates from the partnership.Under what circumstances will Leonard no longer be liable on the lease agreement?

• A)Leonard gives proper notice to Property Company of his intent to dissociate from Jutle.
• B)The three partners and Property Company enter into an appropriate novation agreement.
• C)Leonard filed a Statement of Dissociation more than 90 days prior to leaving the partnership.
• D)Property Company will not serve to relieve Leonard of liability under the lease agreement.

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Definitions:

After-Tax Discount Rate

The discount rate that reflects the net cost of investment after accounting for the tax implications.

Income Tax Rate

The level at which a corporation or person's earnings are taxed.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.

Initial Investments

Initial investments refer to the upfront expenditures or capital put into a project or startup business, which may include costs for equipment, inventory, and facilities.