Sarah, Sue, and AS Incorporated Formed a Partnership on May

question 38

Multiple Choice

Sarah, Sue, and AS Incorporated formed a partnership on May 1, 20X9, called SSAS, LP. Now that the partnership is formed, they must determine its appropriate year-end. Sarah has a 30percent profits and capital interest while Sue has a 35percent profits and capital interest. Both Sarah and Sue have calendar year-ends. AS Incorporated holds the remaining profits and capital interest in the LP, and it has a September 30 year-end. What tax year-end must SSAS, LP, use for 20X9, and which test or rule requires this year-end?

• A)12/31, least aggregate deferral test
• B)9/30, majority interest taxable year
• C)12/31, majority interest taxable year
• D)12/31, principal partners test

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Definitions:

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Artificial Red Blood Cells

Lab-created substitutes for natural red blood cells designed to mimic their oxygen-carrying function.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions, often leading to diffusion.

Clotting Reaction

A process where blood changes from a liquid to a gel, forming a blood clot.