448 Assessment Ch20

Question 1
1 out of 1 points

Which of the following entities is not considered a flow-through entity?

Selected Answer:
D.
C corporation

Question 2
1 out of 1 points

A general partner's share of ordinary business income is similar to investment income; thus, a general partner only includes their guaranteed payments as self-employment income.

Selected Answer:
False

Question 3
1 out of 1 points

Partnerships tax rules incorporate both the entity and aggregate approaches.

Selected Answer:
True

Question 4
1 out of 1 points

Income earned by flow-through entities is usually taxed once at the entity level.

Selected Answer:
False

Question 5
1 out of 1 points

The term "outside basis" refers to the partnership's basis in its assets; whereas, the term "inside basis" refers to an individual partner's basis in her partnership interest.

Selected Answer:
False

Question 6
1 out of 1 points

A partnership may use the cash method despite having a corporate partner when the partnership's average gross receipts for the prior three taxable years don't exceed .

Selected Answer:
B.
$5,000,000

Question 7
1 out of 1 points

Guaranteed payments are included in the calculation of a partnership's ordinary business income (loss) and are also treated as separately-stated items.

Selected Answer:
True

Question 8
1 out of 1 points

Partners must generally treat the value of profits interests they receive in exchange for services as ordinary income.

Selected Answer:
False

Question 9
1 out of 1 points

Which of the following does not represent a tax election available to either partners or partnerships?

Selected Answer:
A.
Electing to expense a portion of syndication costs

Question 10
1 out of 1 points

A partner can apply any passive activity losses against any passive activity income for the year.

Selected Answer:
True