Match Each of the Following Statements with the Terms Below

question 29

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-§ 179 deduction

• 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)Theory under which a partnership's recourse debt is shared among the partners.
• 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.

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a period of time.

Money Income

The number of dollars a person receives per period, such as $400 per week.

Supply Curve

A curve showing the relation between the price of a good and the quantity producers are willing and able to sell per period other things constant.

Law of Demand

An economic principle that states the inverse relationship between the price of a good or service and the quantity demanded.