Under the time-basis method, which factor is directly used to calculate the deceased partner’s share of profit up to the date of death?

Correct answer: Elapsed period from the beginning of the accounting year to death

Under the time-basis method, the estimated annual profit is apportioned according to the period elapsed from the beginning of the accounting year to the date of death and is then multiplied by the deceased partner’s profit-sharing ratio. Therefore, the elapsed period directly affects the calculation; furniture cost and the number of postage bills do not determine the time proportion. Exam tip: calculate the elapsed months or days first, and then apply the profit-sharing ratio.