Discussion Post
• Discuss why a partnership agreement may need features in addition to the income and loss-sharing ratio.
• Discuss the arguments in favor of recording salary and bonus allowances to partners as expenses included in computing net income.
• What are the arguments against recording salary and bonus allowances to partners as partnership expenses?
• Describe the formation of the partnership, including the date of formation and the purpose for the limited partnership.
• Who was the initial general partner? What was the general partner's initial percentage interest in the partnership? And who was the general partner as of December 31, 2003?
• What was the general partner's profit percentage? What economic reasons might the general partner have had for investing in this partnership?
• What were the major elements of the Restructuring Plan approved in 2001 by the limited partners?
• What were the major elements of the Plan of Liquidation that was initiated in 2003?
• The partnership adopted the liquidation basis of accounting beginning on September 30, 2003. Briefly describe the liquidation basis of accounting the partnership used.
• The partnership filed a form 15-12G on May 1, 2006. Obtain this filing. What is the purpose of this form that is required by the SEC?
• Compare the partnership's financial statements before and after the September 30, 2003 adoption of the liquidation basis of accounting.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citatios.