Question

Which of the following does not increase the partnership's tax capital account

Which of the following does not increase the partnership's tax capital account

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Let us answer this question in respect of major transactions -

1. Money Contributed by Partner to the Partnership - In this the capital account will increase.

2. The fair market value of the property which has been contributed by the partner to partnership - In this case as well the capital account will increase. Moreover, the value should be net of liabilities that the partnership is considered to assume.

3. Money Distributed by partnership to partner - This will reduce the partnership’s capital account.

4. Distributive share of the partnership's taxable income and gain - This will increase the partnership's capital account

5. Distributive share of the partnership's taxable losses including capital losses - This will decrease the partnership's capital account.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following aspects does not increase the demand for money? A. Increase in the...
Which of the following aspects does not increase the demand for money? A. Increase in the current wealth B. drop in the interest rate on checking account C. drop in the return on stocks D. drop in the liquidity of the secondary market for bonds please explain, i'm confused
How does the current account differ from the capital account?
How does the current account differ from the capital account?
Nelson is a limited partner in a vinyl shop. At the end of the partnership's tax...
Nelson is a limited partner in a vinyl shop. At the end of the partnership's tax year, Nelson's basis in the partnership interest is $60,000 ($25,000 cash investment plus a $35,000 share of nonqualified nonrecourse financing). Nelson's distributive share of partnership losses for the tax year is $55,000. Nelson has $52,000 of passive income this year from other activities. How much of the $55,000 partnership loss can be used by Nelson in the year of the loss?
Which one of the following assumptions is NOT a condition under which capital structure does not...
Which one of the following assumptions is NOT a condition under which capital structure does not affect company value? a. The real investment policy of the company is fixed b. There is no tax c. There are no information or transaction costs d. The real investment policy of the company is variable
1. Which of the following statements regarding the cost of capital and its effect on capital...
1. Which of the following statements regarding the cost of capital and its effect on capital structure and investment choices is correct? A. All of these answers B. Adding debt does not increase a company's interest rate. C. Because of tax advantages it is cheaper to issue new equity than debt. D. For an investment to be worthwhile, the expected return must be greater than the cost of capital.
Concerning a partnership's Form 1065, which of the following statements is not true? a.The partnership deducts...
Concerning a partnership's Form 1065, which of the following statements is not true? a.The partnership deducts its allowable business interest expense on Form 1065, page 1, and allocates any excess to the partners for carryover. b.The partnership's equivalent of taxable income is reported in the "Analysis of Income (Loss)." c.All taxable/deductible partnership income and expense items are reported on Form 1065, page 1. d.The partnership balance sheet on Schedule L is generally presented on a financial (book) basis. e.The partnership...
Which of the following statements is true of the impact of tax on the cost of...
Which of the following statements is true of the impact of tax on the cost of capital of a firm?​ Select one: a. ​All else being equal, an increase in the corporate tax rate results in a decrease in the weighted average cost of capital. b. ​The before-tax cost of debt is the cheapest component of the cost of capital since the tax paid is a deductible expense. c. ​The before-tax cost of debt is always less than the after-tax...
A partnership's ordinary business income is taxed in the following way: The income earned by the...
A partnership's ordinary business income is taxed in the following way: The income earned by the partnership is taxed to the entity and the partnership is responsible for paying any tax due.   Only the managing partners are individually taxed in a general partnership.   All partnership income is passed through to the individual partners who pay tax on their share of the income.   The ordinary income is always considered self-employment income to each of the partners in all types of partnerships.  
1) Which of the following will necessarily cause an increase in net working capital? a) Increasing...
1) Which of the following will necessarily cause an increase in net working capital? a) Increasing cash balances. b) Paying down current liabilities. c) Issuing shares of stock to purchase fixed assets. d) Increasing long-term debt to purchase more inventory. 2) A firm has total revenue of $1,000, total expenses of $500, an average tax rate of 30% and a marginal tax rate of 35%. What is the firm's net income? Please show all steps. Thank you.
Which of the following can lead to a decrease in the net working capital of a...
Which of the following can lead to a decrease in the net working capital of a firm?        An increase in inventory.         A decrease in accounts payable.         An increase in the checking account balance. A decrease in accounts receivable.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT