1) April is a 50% partner in Pale Partnership. During the year, she withdraws $100,000 and her share of the partnership profits is $125,000. April must include $125,000 in her gross income.

Hint: Partners are only taxed on their SHARE of income...not on the actual Withdrawals...these are often different figures.

Group of answer choices

True

False

2) Als share of the partnerships profits for 2008 is $90,000, but the partnership distributed only $30,000 to him because the partnership needed the cash for its operation in 2008. The other $60,000 was distributed to Al in 2009. Als gross income from the partnership for 2008 is $90,000.

Group of answer choices

True

False

3) A K-1 is prepared for each individual partner or shareholder, showing the share of income/losses, as well as dividends and other income/losses.

Group of answer choices

True

False

4) ABC partnership has net income per books of $63,000 computed as follows:

Net sales	$122,000
Sec. 1245 recapture	18,000
Long-term capital gain	15,000
Charitable contributions	10,000
Administrative expenses	82,000
	----------
BOOK INCOME	$ 63,000

The partnership bottom line Ordinary income is $58,000 ($122,000 + $18,000 - $82,000).

The long-term capital gain and the charitable contributions are separately stated items.

Group of answer choices

True

False