The AB,BC,and CD Partnerships merge into the ABCD Partnership.AB (owned by Austin and Ben)contributes assets worth $100,000.BC (owned by Ben and Charlie)contributes assets worth $200,000.CD (owned by Charlie and Dennis)contributes assets worth $300,000.The capital and profits interest in ABCD is owned by: Austin,10%; Ben,30%; Charlie,25%; and Dennis,35%.ABCD Partnership is a continuation of

Question

Quizplus · Accepted Answer

The ABCD Partnership is a continuation of the CD partnership, which contributed the largest amount of assets. Therefore, D is the best choice. AB and BC partnerships are not the correct choices because they did not contribute the majority of assets and would not have the controlling interest in the new partnership. Option A is not correct because one of the partnerships did continue into the new partnership.

The AB,BC,and CD Partnerships Merge into the ABCD Partnership