Match the following independent distribution payments in liquidation of a partner's interest in an ongoing partnership with the statements below.
-Distribution of cash of $10,000 to a limited partner for goodwill, where goodwill is not provided for in the partnership agreement.
A)A payment for the partner's share of partnership income under § 736(a).
B)A payment for the partner's share of partnership property under § 736(b).
C)The payment includes both a § 736(a) and a § 736(b) element.

Question

Quizplus · Accepted Answer

The distribution is specifically for the partner's interest in goodwill, which is considered a partnership property under §736(b). There is no indication that it is a payment for the partner's share of partnership income under §736(a), or that there is both a §736(a) and a §736(b) element.

Match the Following Independent Distribution Payments in Liquidation of a Partner's