TRUE OR FALSE 51. The sale of interest of the retiring partner to the remaining partner will.requirerecognition of gain or loss on the partnership books.52. The sale of interest of the retiring partner to the new partner will requirerecognition of gain or loss on the partnership books.53. The Interest of the retiring partner includes a loan from the partner.54. The retiring partners' interest is always paid in cash.55. The death of any partner automatically dissolves the partnership.56. Admission of new partner dissolves the partnership but retirement of a partnerdoes not.57. The death of a partner transfers his entire interest to his estate prior tosettlement by the partnership.58. Capital interest is equal to total interest.59. Withdrawal by a partner at less than book value of his capital interest resultedin a gain to be recorded by the partnership.60. Withdrawal by a partner at less than book value of his capital interest resultedin a loss to be recorded by the partnership.

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51. The sale of interest of the retiring partner to the remaining partner will.require recognition of gain or loss on the partnership books.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

TRUE OR FALSE

51. The sale of interest of the retiring partner to the remaining partner will.require
recognition of gain or loss on the partnership books.
52. The sale of interest of the retiring partner to the new partner will require
recognition of gain or loss on the partnership books.
53. The Interest of the retiring partner includes a loan from the partner.
54. The retiring partners' interest is always paid in cash.
55. The death of any partner automatically dissolves the partnership.
56. Admission of new partner dissolves the partnership but retirement of a partner
does not.
57. The death of a partner transfers his entire interest to his estate prior to
settlement by the partnership.
58. Capital interest is equal to total interest.
59. Withdrawal by a partner at less than book value of his capital interest resulted
in a gain to be recorded by the partnership.
60. Withdrawal by a partner at less than book value of his capital interest resulted
in a loss to be recorded by the partnership.

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