Will Is a Partner in Oil Exploration Limited Partnership

question 151

Multiple Choice

Will is a partner in Oil Exploration Limited Partnership. For the current year, the partnership reports net income of $130,000. Will's share of the income is $1,300. Will reports that amount in his gross income. The partnership pays no income tax on its earnings. What concept, construct, or doctrine applies here?

• A)Annual Accounting Period Concept.
• B)Arms-length Transaction Concept.
• C)Assignment of Income Doctrine.
• D)Entity Concept.
• E)Substance Over Form Doctrine.

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Definitions:

Autonomic Nervous System Function

Controls involuntary body functions, such as heartbeat, digestion, and breathing.

Heart Rate

The number of heartbeats per unit of time, often expressed as beats per minute (bpm).

Breathing

Breathing is the involuntary process of inhalation and exhalation, whereby air is drawn into the lungs to facilitate oxygen exchange with the blood and the removal of carbon dioxide.

Olfactory Epithelium

A specialized epithelial tissue inside the nasal cavity that is involved in the sense of smell.