With Regard to Taxation of Partnerships,which of the Following Statements

question 129

Multiple Choice

With regard to taxation of partnerships,which of the following statements is correct?

• A) Profits are taxed twice.
• B) Each partner is taxed in the same way as a sole proprietor.
• C) Taxes are paid on a partnership's profits,after which each partner pays taxes on his or her share of the profits.
• D) A partnership is exempt from taxes.
• E) The partnership is taxed as a separate entity.