Question

Walnut interests is a partnership owned equally by Bob, Jon, and Gary. Bob and Jon each have a November 30 tax year-end, while Gary has a January 31 tax year-end. Under the general rule, what tax year-end should the partnership adopt?a. December 31 b. January 31 c. November 30 d. November 30 or January 31 e. None of the above

Answer 1

c. November 30

Step-by-step explanation:

Since in the question it is mentioned that the Walnut interest i.e. partnership owned and equaled by Bob, Jon and Gary. In the case of Bob and Job each contains November 30 in term of tax year while for Gary it would be Jan 31

So here the partnership should be adopted as on November 30 because the adoption of the partnership is dependent upon on the majority of the partners.

hence, the correct option is c.