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Identify which of the following statements is true. A partner's distributive share includes the full amount...

Identify which of the following statements is true. A partner's distributive share includes the full amount of partnership ordinary income, which she must report on her tax return plus her share of separately stated taxable and tax-exempt items.

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Answer #1

The statement is TRUE - A Partner's distributive share includes the full amount of partnership ordinary income, which she must report on her tax return plus her share of seperately stated taxable and tax exempt items.

Distributive share means allocation of income or loss in a partnership, Distributive share is based on the net income of the business as calculated in the business partnership return which includes the full amount of partnership ordinary income, plus share of seperately stated taxable and tax exempt items.

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