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William Is a General Partner in the WST Partnership

question 156

True/False

William is a general partner in the WST partnership. During the current year, he receives a guaranteed payment of
$10,000 for services he provides to the partnership, and his distributive share of partnership income is $30,000. William is required to pay self-employment tax on the $10,000 guaranteed payment but not on his distributive share of partnership income.


Definitions:

Oil Fill Holes

Openings designed in mechanical systems for the purpose of adding lubrication oil to ensure smooth operation and reduced friction.

Pinion Angle

The angle between the driveshaft and the pinion gear in the differential, critical for smooth power transmission.

Roadranger CD-50

A type of heavy-duty transmission lubricant designed for use in Roadranger transmissions, offering protection under high-stress conditions.

API GL-5

A classification of lubricants set by the American Petroleum Institute (API) for gear oils with high-performance properties, used in axles and transmissions.

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