Partners Adjust Their Outside Basis by Adding Non-Deductible Expenses and Subtracting

question 95

True/False

Partners adjust their outside basis by adding non-deductible expenses and subtracting any tax-exempt income to avoid being double taxed.
Non-deductible expenses decrease basis and tax-exempt income increases basis.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factors of production.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Marginal Product

The additional output gained by employing one more unit of input, holding the levels of other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.