Which of the Following Is TRUE of a Partnership and a Corporation

question 6

Multiple Choice

Which of the following is TRUE of a partnership and a corporation?

• A)In a corporation,income is taxed at the corporate level; whereas,in a partnership,income is taxed twice.
• B)In a partnership,income is taxed once at the individual level; whereas,in a corporation,income is taxed twice.
• C)Income from both forms of organizations are double-taxed.
• D)In a partnership,income is exempted from tax up to $10 million; whereas,in a corporation,income is taxed twice.

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Definitions:

Machine-Hours

A unit of measure that represents the operation of one machine for one hour, used in manufacturing to allocate costs based on machine usage.

Standard Costing System

An accounting system that uses standard costs for determining the cost of products or services, facilitating variance analysis against actual costs.

Standard Hours

The allocated time that is expected to be required to complete a specific task or job in a manufacturing or project environment.

December's Production

The total output or number of units produced by a company or factory during the month of December.