1-What is the difference between the dissolution of a partnership and the liquidation of partnership property? After liquidating all property and paying partnership obligations, what is the basis for allocating remaining cash among the partners?
2-When a partner withdraws from a partnership, why is the final distribution often based on the appraised value of the business rather than on the book value of the capital account balance?
The solution discusses the difference between dissolution of partnerships and liquidation of partnership property. The basis for allocating remaining cash among the partners are found.