Identify Which of the Following Statements Is True

question 76

Multiple Choice

Identify which of the following statements is true.

• A) It may be necessary for the partnership to capitalize a partner's guaranteed payment.
• B) A partner who performs services for a partnership is usually not considered an employee of the partnership.
• C) Guaranteed payments are ordinary income to the recipient.
• D) All of the above are true.

---

Definitions:

Mesoderm

During the early stages of embryonic development, the central layer that eventually develops into the body's muscles, bones, and blood circulation system.

Ectoderm

The outermost layer of embryonic cells, which develops into the nervous system, skin, and hair.

Epidermis

The outermost layer of skin that serves as a protective barrier against the environment.

Collagen Fibers

Ropelike protein of the extracellular matrix.