Mary and Martha, Who Had Been Friends for Years, Decided

question 93

Essay

Mary and Martha, who had been friends for years, decided to open a retail store to sell kitchen and bath items. In June, they spent $500 looking for a suitable location. They paid an attorney $1,500 to have their partnership agreement drawn up, and they paid an accountant $400 to set up their accounting system. During July, they searched for vendors for the merchandise they planned to carry and stocked their shelves. The store opened in August and was immediately successful. They paid the accountant $300 to prepare an income statement for August. What tax issues should the partnership consider with regard to beginning this business?

---

Definitions:

Respiration Rate

The number of breaths taken per minute; a vital sign used to assess an individual's respiratory health and function.

Blood Sugar

The concentration of glucose in the blood, an important energy source for the body's cells.

Digestion

The biological process by which the body breaks down food into absorbable components.

Emergency Situation

A sudden, urgent, usually unexpected occurrence or condition requiring immediate action.