If the retiring partner's interest is sold to one of the remaining partners, the retiring partner's equity is merely transferred to the other partner.

Question

Quizplus · Accepted Answer

When a retiring partner sells their interest to one of the remaining partners, their equity is transferred to that partner rather than being completely bought out by the partnership or liquidated. Therefore, the retiring partner's equity is merely transferred to the remaining partner.

If the Retiring Partner's Interest Is Sold to One of the Remaining