On March 1 20X0 M retired from the MNO Partnership a calenda

On March 1, 20X0, M retired from the MNO Partnership, a calendar-year partnership. M continued to receive retirement payments until February 28, 20X1, when his entire partnership interest was liquidated. For tax purposes, when did M cease to be regarded as a partner? a. March 1, 20X0 b. December 30, 20X0 c. December 31, 20X1 d. February 28, 20X1

Solution

answer is option A March 1, 20X0

M officially retired on  March 1, 20X0 and it would be considered a date on which M cease to be regarded as a partner.

Calender-year partinership indicates that particular accounts will be prepared from janury 1 to december 31 but this does not affect the retirment date of M.