Match Each of the Following Statements with the Numbered Terms

question 55

Multiple Choice

Match each of the following statements with the numbered terms below that provide the best definition.
-Carryover

• A)Organizational choice of many large accounting firms.
• B)Partner's percentage allocation of current operating income.
• C)Might affect any two partners' tax liabilities in different ways.
• D)Partnership in which partners are liable only for any partner's malpractice.
• E)Amount that might be reported on either form 1065, page 1 or, on Schedule K.
• F)Transfer of asset to partnership followed by immediate distribution of cash to partner.
• G)Must have at least one general and one limited partner.
• H)Long-term capital gain might be recharacterized as ordinary income.
• I)All partners are jointly and severally liable for entity debts.
• J)Theory treating the partner and partnership as separate economic units.
• K)Partner's basis in partnership interest after tax-free contribution of asset to partnership.
• L)Partnership's basis in asset after tax-free contribution of asset to partnership.
• M)One way to calculate a partner's economic interest in the partnership.
• N)Owners are members.
• O)Theory treating the partnership as a collection of taxpayers joined in an agency relationship.
• P)Participates in management.
• Q)Not liable for entity debts.
• R)No correct match provided.

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Definitions:

Experience

The knowledge or skill acquired by a period of practical involvement in an activity.

Responsibility

The state or duty of being accountable for something, especially within the context of professional or personal roles.

Declarative

Pertaining to statements or expressions that make a clear, definitive declaration or announcement.

Conditional

Subject to one or more conditions or requirements being met; not absolute.