Tax effect on Partnership Firm of Fixed asset revaluation

yogesh asked on 20 January 2009 Answer this query now Tax effect on Partnership Firm of Fixed asset revaluation Dear sir, Pls guide in following regard. On 1/4/2000: Revaluation of fixed assets of Firm by following entry FA .....Dr To Capital A/c ....Cr On 2/4/2000: Dissolution & Reconstitution of Firm by entry of 2 new partners (Now total no. of parners 4 i.e.Old 2;New 2) On1/6/2000: Old 2 partners retired from firm; New 2 will carry on the firms business. In such situation, what will be the tax effect on firm of Fixed asset revaluation? Pls suggest. Thanking you. Yogesh.