Identify Which of the Following Statements Is True

question 15

Multiple Choice

Identify which of the following statements is true.

• A)A partner's distributive share includes the full amount of partnership ordinary income, which she must report on her tax return plus her share of separately stated taxable and tax-exempt items.
• B)Sam has a 20% interest in partnership capital and profits but a 40% interest in partnership losses. The partnership has no special allocations or precontribution gains or losses. In a year in which the partnership reports ordinary income of $100,000 and a capital loss of $30,000, Sam's distributive share is $20,000 ordinary income and $12,000 capital loss.
• C)The partner's distributive share is the partner's share of any assets distributed by the partnership.
• D)All of the above are false.

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Definitions:

Second Bank

A term likely referring to the Second Bank of the United States, a national bank that operated from 1816 to 1836, playing a pivotal role in early American financial policy.

National Government Debt

The total amount of money that a country's government has borrowed, through various means, and has yet to repay.

Federal Expenditures

The spending of government funds, allocated through the federal budget, on various national programs, services, and infrastructure.

Corporate Enterprises

Organizations or companies engaged in commercial, industrial, or professional activities, often structured to yield profits for shareholders.