Partnership profits: Multiple Choice are distributed to general partners with interest paid to limited partners. are...
Partnership profits:
Multiple Choice
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are distributed to general partners with interest paid to limited partners.
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are generally reinvested in the firm rather than being distributed.
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are distributed to the partners on an aftertax basis.
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are generally held by the partnership and later distributed as dividend payments.
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are fully distributed as taxable income to the partners.
Homework Answers
are fully distributed as taxable income to the partners.
Partnership profits are not taxed in the hands of the firm but taxed in the hands of the partners. Hence they are fully distributed to the partners and then taxed.
1: Incorrect since profits are distributed to all the partners.
2: Incorrect since profits are distributed to all the partners.
3:Incorrect: There is no tax payable by the firm
4:Incorrect: Dividend is paid only by company
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Partnership profits:
Multiple Choice
are distributed to general partners with interest paid to
limited partners.
are...
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