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Partners' Equity
The owners' claim against the partnership assets, representing their share of the business's total equity.
Partnership Earnings
The share of profits or losses generated by a partnership that is allocated to each partner according to their agreement.
Federal Income Tax
A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
Incoming Partner
A new member joining a partnership, bringing capital to the business in exchange for a share of the partnership's profits and losses.
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