1. Which of the following statement is correct concerning liquidation of a partnership? I. Assets must be liquidated solely through sale transaction II. Assets can be sold at distress prices in a single transaction to an interested party III. All assets can be sold at fair value in a single transaction to a competitor or to others who wish to continue the business. [A] I only [B] I and II only [C] II and III only [D] I, II and III 2. S1: Lump-sum liquidation refers to a series of interim distributions to partners while the sale of noncash assets and the payment of liabilities is occurring. S2: Installment liquidation refers to the sale of noncash assets and payment of liabilities before single distribution to partners. [A] Both statements are correct [B] Both statements are incorrect [C] Only S1 is correct [D] Only S1 is incorrect
1. Which of the following statement is correct concerning liquidation of a partnership?
I. Assets must be liquidated solely through sale transaction
II. Assets can be sold at distress prices in a single transaction to an interested party
III. All assets can be sold at fair value in a single transaction to a competitor or to others who wish to continue the business.
[A] I only
[B] I and II only
[C] II and III only
[D] I, II and III
2. S1: Lump-sum liquidation refers to a series of interim distributions to partners while the sale of noncash assets and the payment of liabilities is occurring. S2: Installment liquidation refers to the sale of noncash assets and payment of liabilities before single distribution to partners.
[A] Both statements are correct
[B] Both statements are incorrect
[C] Only S1 is correct
[D] Only S1 is incorrect
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