Advance #6

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Assume that because of a new law, the types of significant transactions a partnership engages in are no longer lawful. Two of the five partners wish to wind up and terminate the partnership. Discuss the following:

  1. Can these two partners require the partnership to be terminated?
  2. Discuss the accounting for a liquidation where there is no deficit.
  3. Discuss how the accounting differs if there is a deficit in one of the partner’s capital accounts
  4. How would the accounting for a liquidation differ for a lump-sum payment vs. installment payments?
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