Fred, George, Ron, and Ginny form a general partnership. They each contribute capital to the partnership in
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Fred, George, Ron, and Ginny form a general partnership. They each contribute capital to the partnership in the following amounts: Fred, 20 percent; George, 20 percent; Ron, 10 percent; and Ginny, 50 percent. The partnership makes $500,000 profit for the year. Although the capital contributions of the partners differ significantly, each of the four partners receives $125,000 of the profits. All four partners receive $125,000 of the $500,000 in profits due to which of the following?
The right to share in the profits
A duty of care
The right to participate in the management
Indemnification
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: