Which one of the following statements is true regarding a partner's personal liability for partnership debts? In a limited partnership, all partners have limited liability for partnership debts In a general partnership, all partners are liable for entity debts. In a limited liability partnership, a partner might be subject to liability for other partners' malpractice. LLC members can never be liable for entity debts.

A general partnership, unlike a limited partnership, is an entity that legally functions separate and apart from its owners. True False

What is a partnership dissolution? Does dissolution automatically necessitate the cessation of business and the liquidation of partnership assets?

The outside basis is defined in the internal revenue code as a partner's basis in the partnership interest.     True   False

Which of the following is a disadvantage of general partnerships? a) A partner who withdraws from a partnership cannot be held liable for any debts the firm had at the time of withdrawal. b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. c) All general partners have unlimited liability for the debts and obligations of their business. d) The partners in a general partnership are exposed to double taxation.

Which of the following is true regarding capital deficiencies? O a Ob Oc Od The partners do not have a legally enforceable claim against the partner with the capital deficiency. If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the partners with debit balances must absorb the loss. The loss is allocated based on the profit and loss ratios between the partners whether with credit or debit balances. if the partner with the capital deficiency pays the amount owed to the partnership, the deficiency is eliminated.

Which of the following statements regarding partnerships is true? a. Partnership income is taxed in the partnership. b. Partnership losses cannot be offset against the partners other income c. Partnership income is included in a partners income in the year of disbursement. d. Partnerships may earn business income, property income, and capital gains.

William (40% of gains and losses) . . . . . . . . . . . $ 220,000Jennings (40%) . . . . . . . . . . .  . 160,000 Bryan (20%) . . . . . . . . . . . . . . 110,00015. Darrow invests $270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrow’s beginning capital balance? Choose the correct.a. $410,000 and $270,000b. $140,000 and $270,000c. $140,000 and $189,000d. $410,000 and $189,000

Which of the following statements is always true regarding accounting methods available to a partnership? A) If a partnership has a partner that is a personal service corporation, it cannot use the cash method.   B) If a partnership is a tax shelter, it can use the cash method of accounting.   C) If a partnership has a partner that is a C corporation, it cannot use the cash method.   D) If a nontax-shelter partnership had average annual gross receipts of less than $26,000,000 (2021) for the last three tax years, it can use the cash method.

Choose the response that correctly completes the following sentence about an individual partner's outside basis in a partnership. A partner's outside basis: A) Cannot be less than zero. B) Does not change as long as the partner maintains their partnership interest. C) Is used to apply the basis limitation to losses from a partnership. D) Must be tracked by the partnership. An S corporation shareholder may carry forward unallowed loss that exceeds the basis of their stock (increased by any loans the shareholder made to the corporation) for what period of time? A) A maximum of two years. B) A maximum of ten years. C) A maximum of twenty years. D) Indefinitely, until they are allowed to deduct the entire amount. The Form 1099-A, Acquisition or Abandonment of Secured Property, gives the taxpayer the information that they need to calculate: A) The amount that they will need to pay to avoid having to give up their property. B) Gain or loss from the sale of the property. C) Their ordinary…