Tim and Darby Are Equal Partners in the TD Partnership

question 248

True/False

Tim and Darby are equal partners in the TD Partnership. Partnership income for the year is $60,000. Tim needs cash in order to pay tax on his share of the partnership income, but Darby wants to leave the cash in the partnership for expansion. If the partners agree, it is acceptable for TD to distribute $8,000 to Tim, and no cash or other property to Darby.

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A currency that the government has declared to be legal tender but is not backed by any physical commodity.

Legal Tender

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