Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income – $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: A partnership is not a taxpaying entity. Its profit (loss) and separate items flow through to the partners. The partnership's Form 1065 reports net profit of $75,000 . Carol and Candace both receive a Schedule K-1 reporting net profit of $37,500 . Each partner reports net profit of $37,500 on her own return (Form 1040).
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A. first sale doctrine B. common origin doctrine C. exhaustion-of-rights doctrine D. doctrine of exhaustion
According to the 1994 amendments to the Bankruptcy Act, the U.S. Judicial Conference must adjust for inflation the dollar amounts of the requirements for filing involuntary cases, priorities, and exemptions every seven years
a. True b. False Indicate whether the statement is true or false
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Fill in the blank(s) with the appropriate word(s).