When a partner withdraws, the partnership may have an audit to adjust the assets to their:
A) historic cost.
B) depreciated value.
C) fair market value.
D) book value.

Question

Quizplus · Accepted Answer

When a partner withdraws, it's common for the partnership to adjust the assets to their fair market value. This ensures that the withdrawing partner receives a fair share of the partnership based on the current value of its assets, rather than their historical cost, depreciated value, or book value.

When a Partner Withdraws, the Partnership May Have an Audit