Identify Which of the Following Statements Is True

question 55

Multiple Choice

Identify which of the following statements is true.

• A)Tax-exempt interest received by a partnership is taxable to the partners if distributed.
• B)Partnership gains and losses from two different casualty and theft occurrences in one year are passed through to the partners as two separate items.
• C)The amount and character of any gains/losses is determined at the partnership level.
• D)All of the above are false.

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Definitions:

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Discriminated

Treated unjustly or unfairly based on particular characteristics, such as race, age, or gender.

Out-of-state Wineries

Wineries located outside of a particular state that may be subject to different regulations for selling and shipping their products to that state.

Marbury V. Madison

A landmark Supreme Court case in 1803 that established the principle of judicial review in the United States.