A Partnership Must Separately Report Section 1231 Gains and Losses

question 68

True/False

A partnership must separately report Section 1231 gains and losses rather than including them in ordinary taxable income.

---

Definitions:

Budgeted Purchases

The anticipated expenditures on goods and materials a company plans to buy for a specific period.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Yarn

A long continuous length of interlocked fibers used in the production of textiles, knitting, crocheting, sewing, and weaving.

Beginning Finished Goods

The stock of completed goods ready for sale at the beginning of a financial period.