Death of a partner: A partnership agreement is a contract between the partners, so if a partner intentionally or willfully transfers or sells his or her whole interest, the partnership continues to exist. In case a partner dies suddenly, the agreement of the deceased partner is not included for partnership to be continued, so the partnership dissolves with the death of the partner. To determine: At the death of a partner, what happens to the partnership?

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 14RQ

To determine

Death of a partner:

A partnership agreement is a contract between the partners, so if a partner intentionally or willfully transfers or sells his or her whole interest, the partnership continues to exist. In case a partner dies suddenly, the agreement of the deceased partner is not included for partnership to be continued, so the partnership dissolves with the death of the partner.

To determine:

At the death of a partner, what happens to the partnership?

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Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…

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Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 14RQ

To determine

Death of a partner:

A partnership agreement is a contract between the partners, so if a partner intentionally or willfully transfers or sells his or her whole interest, the partnership continues to exist. In case a partner dies suddenly, the agreement of the deceased partner is not included for partnership to be continued, so the partnership dissolves with the death of the partner.

To determine:

At the death of a partner, what happens to the partnership?

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 14RQ

To determine

Death of a partner:

A partnership agreement is a contract between the partners, so if a partner intentionally or willfully transfers or sells his or her whole interest, the partnership continues to exist. In case a partner dies suddenly, the agreement of the deceased partner is not included for partnership to be continued, so the partnership dissolves with the death of the partner.

To determine:

At the death of a partner, what happens to the partnership?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 14RQ

To determine