Question

Thomas invests $10,000 in the Thomas and Trudy partnership named Tremendous Enterprise. Thomas needs $2,000 for medical expenses and insists that he is entitled to withdraw that amount immediately from what he has invested. Trudy asserts that the $10,000 investment is partnership property. Under the RUPA, who owns the $10,000?

a. Tremendous Enterprise
b. Thomas only
c. Thomas individually and Trudy individually
d. The $10,000 is owned by no one, but is merely a future interest of Thomas

Answer 1

Under the RUPA, the $10,000 investment in Tremendous Enterprise is owned by Thomas individually and Trudy individually, not Tremendous Enterprise itself.

Step-by-step explanation:

Under the RUPA (Revised Uniform Partnership Act), the $10,000 investment in Tremendous Enterprise is considered partnership property. Under the RUPA, the $10,000 investment in Tremendous Enterprise is owned by Thomas individually and Trudy individually, not Tremendous Enterprise itself.

Thomas cannot immediately withdraw $2,000 for medical expenses as he insists, as the investment is owned by the partnership, not by Thomas individually. Trudy's assertion is correct. Therefore, the answer is c. Thomas individually and Trudy individually.