A distribution can be "proportionate" (as defined for purposes of Subchapter K) even if only one partner receives assets from the partnership
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: A disproportionate distribution arises when the partner's share of ordinary income-producing assets increases or decreases as the result of a distribution. There are situations in which a distribution can be made to only one partner without upsetting this balance. For example, the partnership might not own any "hot assets" or the partnership might liquidate the interest of that partner by distributing the partner's share of hot and non-hot assets (without making corresponding distributions to the other partners). In either of these situations, each partner is still responsible for the "ordinary income potential" inherent in his/her/its share of partnership assets, and so the distribution is considered to be "proportionate.".
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Last year Rosenberg Corp. had $195,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?
A. 4.36% B. 4.57% C. 4.80% D. 5.04% E. 5.30%
An inverted triangle with the letter "N" represents a file in "name" order
Indicate whether the statement is true or false
The Endangered Species Act prohibits the "taking" of an endangered species
Indicate whether the statement is true or false
The purpose of GATT is to:
a. establish fixed exchange rates b. determine international comparative advantages c. reduce or eliminate tariffs and other barriers to trade d. establish the European Union e. implement NAFTA