A partner dies during the year. If the profit up to the date of death is estimated on a time basis, which formula correctly calculates the deceased partner’s share of profit?

Correct answer: \(\text{Estimated annual profit} \times \frac{\text{period up to death}}{\text{full year}} \times \text{deceased partner's profit-sharing ratio}\)

Under the time-basis method, the estimated annual profit is first apportioned according to the fraction of the year completed up to the date of death. The resulting profit is then multiplied by the deceased partner’s profit-sharing ratio. Therefore, option A is correct. Option B uses the period after death, while option C omits the partner’s profit-sharing ratio. Exam tip: use months/12 for a monthly period or days/365 for a daily period unless the question specifies another basis.