In 2019, T Corporation Changed Its Tax Year from Ending

question 73

True/False

In 2019, T Corporation changed its tax year from ending each April 30 to ending each December 31.The corporation earned $60,000 during the period May 1, 2019 through December 31, 2019.The annualized income for the short year is $90,000.

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Definitions:

Limited Partnership

A partnership structure where there is at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who provide capital and have liability only up to the amount of their investment.

Unlimited Liability

Refers to a legal structure where the owners are personally responsible for the debts and obligations of the business without any limit, potentially impacting their personal assets.

Legal Agreement

A contract that outlines terms and conditions between parties, binding them legally.

UPA

Uniform Partnership Act, which is legislation adopted by some states in the USA to govern partnerships.