Asked by Stone Jamison on Jul 04, 2024
Verified
Abraham,who is a partner in Adona's firm,has been found guilty of the crime of tax evasion.His partners at the firm want to expel him from partnership but they are not ready to give up his interest in the partnership.Is Abraham entitled to his interest in the partnership?
Tax Evasion
The illegal act of not paying taxes owed, thereby hiding income or information from the tax authorities.
Partnership Interest
An ownership share held by a partner in a partnership, representing a portion of the partnership's assets and profits.
- Recognize the privileges and responsibilities of dissociated partners, covering buyout mechanisms and financial compensation.
Verified Answer
CS
Ciara ScottJul 07, 2024
Final Answer :
Abraham is entitled to his interest in the partnership because expulsion is provided for under the provisions of the partnership agreement,but expulsion of a partner in accordance with the agreement in nonwrongful.A partner who nonwrongfully dissociates from the partnership is entitled to be paid the value of her partnership interest.
Learning Objectives
- Recognize the privileges and responsibilities of dissociated partners, covering buyout mechanisms and financial compensation.
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