When the Owner of a Sole Proprietorship Accepts a Partner

question 59

Multiple Choice

When the owner of a sole proprietorship accepts a partner, the assets of the proprietorship

• A)must be transferred to the partnership at the values reflected in the financial records of the proprietorship.
• B)must be converted to cash and used to pay any debts of the proprietorship, with excess cash available for investment in the new partnership.
• C)may be adjusted to reflect current values before being transferred to the partnership.
• D)cannot be invested in the new partnership.

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