Match Each of the Following Statements with the Terms Below

question 98

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-Schedules M-1 or M-3

• A)Adjusted basis of each partnership asset.
• B)Operating expenses incurred after entity is formed but before it begins doing business.
• C)Each partner's basis in the partnership.
• D)Reconciles book income to "taxable income."
• E)Tax accounting election made by partnership.
• F)Tax accounting calculation made by partner.
• G)Tax accounting election made by partner.
• H)Does not include liabilities.
• I)Designed to prevent excessive deferral of taxation of partnership income.
• J)Amount that may be received by partner for performance of services for the partnership.
• K)Computation that determines the way recourse debt is shared.
• L)Will eventually be allocated to partner making tax-free property contribution to partnership.
• M)Partner's share of partnership items.
• N)Must generally be satisfied by any allocation to the partners.
• O)Justification for a tax year other than the required taxable year.
• P)No correct match is provided.

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Definitions:

Product Liability

The legal liability a manufacturer or trader incurs for producing or selling a faulty product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Garnishment

A proceeding in which a creditor legally seizes a portion of a debtor's property, such as wages, that is in the possession of a third party, such as an employer.

Misrepresentation

A false statement or lie that deceives, misleads, or distorts the truth.