When a Partner Contributes an Asset with an Outstanding Obligation

question 38

True/False

When a partner contributes an asset with an outstanding obligation into a partnership,such as a building with a mortgage,the obligation is transferred to the partnership.

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Definitions:

Stem Cells

Undifferentiated biological cells that can differentiate into specialized cells and can divide to produce more stem cells.

Differentiating

The process of becoming different in the course of development or making distinctions between entities or conditions.

Neurons

Nerve cells that transmit information through electrical and chemical signals in the body’s nervous system.

Blood Clot

A mass formed from platelets and fibrin in the blood to stop bleeding by clogging broken blood vessels.