Which One of the Following Is an Example of a Special

question 167

Multiple Choice

Which one of the following is an example of a special allocation of partnership income?

• A) The partnership's capital gains and losses are shown separately on Schedule K-1.
• B) Distributions from the partnership to the partner are shown on Schedule K-1 line 20.
• C) The partnership agreement provides that Marcus will report all charitable contributions rather than his 20% distributive share.
• D) The Schedule K-1 reports each partner's share of the information they need in order to calculate the § 199A (qualified business income) deduction.
• E) None of the above items are special allocations.

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Definitions:

Cost Structure

An outline of the types and relative proportions of fixed and variable costs that a business incurs in its operations.

Outsourced Activities

Business processes or tasks that are contracted out to an external provider, often to reduce costs, access specialized expertise, or improve efficiency.

Expensive Resources

Resources that have a high cost associated with them, either due to their scarcity, quality, or the demand for them.

Automobile Manufacturer

A company that produces and sells cars, trucks, and other vehicles to consumers worldwide.