In a Partnership Form of Organization,income Tax Liability,if Any,is Incurred

question 39

Multiple Choice

In a partnership form of organization,income tax liability,if any,is incurred by:

• A) the partnership itself.
• B) the partners individually.
• C) both the partnership and the partners.
• D) neither the partnership nor the partners.

---

Definitions:

Initial Cost

The original expense incurred to acquire an asset or start a project, including purchase price and any other initial expenses.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the loss of value over time.

Residual Value

The estimated amount that an asset will realize upon its sale at the end of its useful life.

Straight-Line Depreciation

A method of accounting in which an asset's cost is evenly distributed over its useful life to represent its consumption.