​Which One of the Following Is an Example of a Special

question 79

Multiple Choice

​Which one of the following is an example of a special allocation of partnership income?

• A)​The partnership's capital gains and losses are shown separately on Schedule K-1.
• B)​Distributions from the partnership to the partner are shown on Schedule K-1 line 20.
• C)​The partnership agreement provides that Marcus will report all charitable contributions rather than his 20% distributive share.
• D)​The Schedule K-1 reports each partner's share of the information they need in order to calculate the § 199 deduction.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product, required for external reporting in many jurisdictions.

Ending Inventory

The total value of all unsold goods still available in stock at the end of an accounting period.

Absorption Costing

A calculation method in accounting that compiles all production-related costs, namely direct materials, direct labor, and every overhead cost (both variable and fixed), into the product's pricing.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as an expense of the period.