A partner may withdraw from a partnership and take assets valued at more than book equity if:
A) the remaining partners are not anxiously awaiting the partner's retirement.
B) the partnership assets are overvalued.
C) the partnership assets are undervalued.
D) Both A and C are correct.

Question

Quizplus · Accepted Answer

A partner may withdraw and take assets valued at more than book equity if the partnership assets are undervalued, as this would mean the book value does not reflect the true market value of the assets.

A Partner May Withdraw from a Partnership and Take Assets