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:

Major Depressive Disorder

A mental health condition marked by persistent feelings of sadness, hopelessness, and loss of interest, often accompanied by physical symptoms.

Debilitating

Debilitating describes a condition or illness that severely affects one's strength or ability to carry out day-to-day activities.

Hospitalization

The process or period of receiving medical treatment in a hospital.

Dissociative Disorder

A psychological condition characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.