Curry's sale of her partnership interest causes a partnership termination. The partnership's business and financial operations are continued by the other members. What is (are) the effect(s) of the termination?
I. There is a deemed distribution of assets to the remaining partners and the purchaser.
II. There is a hypothetical recontribution of assets to a new partnership.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer: C
CPA Exam
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