Which Requirement Must Be Satisfied in Order to Specially Allocate

question 32

Multiple Choice

Which requirement must be satisfied in order to specially allocate partnership income or losses to partners?

• A)Special allocations must have economic effect.
• B)At least one partner must agree to the special allocations.
• C)Special allocations must be insignificant.
• D)Special allocations must reduce the combined tax liability of all the partners.

---

Definitions:

Twin Countershaft Transmission

A type of manual transmission found in heavy vehicles, using two parallel shafts to allow for a wider range of gears.

Constant Mesh

Gears positioned to remain in permanent mesh, not engaged and disengaged by shifting action.

Sliding Clutch

Actuated by a shift yoke, used to engage a gear on a shaft. Also known as a dog clutch.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of a project or investment by calculating the difference between the present value of cash inflows and outflows.