Which of the following statements about a partnership is true? A. Partners are taxed on distributions from a partnership. B. Partners are taxed on their allocable share of income whether it is distributed or not. C. A partnership is a taxpaying entity. D. Partners are considered employees of the partnership.

Question

Social Studies

Elle Zimmerman

1 June, 17:40

Which of the following statements about a partnership is true? A. Partners are taxed on distributions from a partnership. B. Partners are taxed on their allocable share of income whether it is distributed or not. C. A partnership is a taxpaying entity. D. Partners are considered employees of the partnership.

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Answers (1)

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Braylon Carlson · Answer 1

B. Partners are taxed on their allocable share of income whether it is distributed or not.

Explanation:

The partnership is an agreement between the two or more people to oversee the business and shares its profits and liabilities. The partner's agreement to cooperate in advance of their mutual interest and enjoy the special benefits of the tax policy.