Asked by Annie Mueller on Jul 07, 2024
Verified
The different partners are taxed on:
A) the gross revenue of the partnership.
B) the amount they withdraw from the partnership.
C) the total amount of the net profit of the partnership.
D) the partners' share of the net profit of the partnership.
Net Profit
The amount of money a company earns after deducting all costs, expenses, and taxes from the total revenue.
- Understand the tax implications on the different partners based on their share of net profit from the partnership.
Verified Answer
UV
Umeira VijendraJul 11, 2024
Final Answer :
D
Explanation :
Partners in a partnership are taxed on their individual share of the net profit of the partnership, not on the gross revenue, the amount they withdraw, or the total net profit of the partnership. This allows for the income to be taxed at the individual partners' tax rates.
Learning Objectives
- Understand the tax implications on the different partners based on their share of net profit from the partnership.
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