Tim and Darby Are Equal Partners in the TD Partnership

question 248

True/False

Tim and Darby are equal partners in the TD Partnership. Partnership income for the year is $60,000. Tim needs cash in order to pay tax on his share of the partnership income, but Darby wants to leave the cash in the partnership for expansion. If the partners agree, it is acceptable for TD to distribute $8,000 to Tim, and no cash or other property to Darby.

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Expenses

Costs incurred in the process of earning revenue; general operational costs of a business.

Operating Revenue

Revenue earned from a company’s primary business activities, excluding items like investment revenue.

Car Dealership

A business that specializes in the sale of new or used cars.

Office Supplies

Office supplies refer to various items and equipment used in offices or for professional purposes, such as stationery, computers, and furniture.