Regarding a Partnership, Which of the Following Statements Is/are Always

question 33

Multiple Choice

Regarding a partnership, which of the following statements is/are always correct?
I.If a partnership is an active trade or business and it has a $65,000 loss from its business operations that is passed-through as an active loss to its partners, each active partner can deduct his full share of loss for the year to the extent they have basis that is at-risk.
II.Salaries and bonuses paid to partner-employees (other than guaranteed payments) are a deductible business expense.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Critical Estimate

An essential appraisal or calculation, often concerning a project’s time, cost, or resources, that significantly impacts planning and decision-making.

Ballpark Estimate

An approximate or rough calculation, often provided without detailed analysis, to give a general idea of the potential size or cost.

Synchronous Communication

A type of communication where participants interact in real-time, such as through phone calls, video conferencing, or face-to-face meetings.

Project Log

A document or record keeping system where details of the project's events, decisions, and changes are maintained.