Carol and Candace Are Equal Partners in Peach Partnership

question 62

True/False

Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income - $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income.

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Definitions:

Dolly Legs

Trailer landing gear system; consists of gear-cranked, retractable legs reinforced by fixed gusset arms.

Lift Axle

A dead axle that can be raised and lowered using air pressure.

Hinged Trailer Door

a door mechanism on trailers that is attached by hinges, allowing it to swing open and closed for access or loading.

Curtain-Sided

Describes a trailer or truck with flexible sides (curtains) that can be opened for easy loading and unloading, while offering protection during transit.