Distributions-in-kind during a winding up occurs when:
A)partners receive proceeds from the partnership's assets.
B)partners receive the assets rather than proceeds from their sale.
C)partners receive the assets they personally attributed to the partnership.
D)partners receive bonuses when the sale of their assets is more than their debt.

Question

Quizplus · Accepted Answer

Winding up does not always require the sale of the assets or the business.When a partnership has valuable assets,the partners may wish to receive the assets rather than the proceeds from their sale.Such distributions-in-kind are rarely permitted.

Distributions-In-Kind During a Winding Up Occurs When