Partnership accounting does not: Multiple Choice Use a capital account for each partner. Use a withdrawals account for each partner. Allocate net income to each partner according to the partnership agreement. Allocate net loss to each partner according to the partnership agreement. Tax the business entity.

Net income for a partnership has to be allocated based on stated ratios.   Question 2 options:   True   False

Tax Drill - Effect of Partnership Operations on Basis Indicate whether the following items "Increase" or "Decrease" a partner's basis in the partnership. a.   A partner's proportionate share of nondeductible expenses.   b.   A partner's proportionate share of any increase in partnership liabilities.   c.   A partner's proportionate share of partnership income.   d.   A partner's proportionate share of any reduction in partnership liabilities.

One of the final steps in terminating a partnership is the distribution of remaining assets to the partners after all obligations have been met. What is the basis for distributing any remaining assets/cash among the partners? How would loans from partners affect the distribution of partnership assets?