1. partnerships are taxed

A. at the partnership level on the business income only

B. at the partner level on business income only

C. at the partner level on business income and other separately stated items

D. at the partnership level on business income and the partner level on separately stated items.

2. A partner in the Gondor partnership is attempting to calculate his deductible loss for income tax P in order to calculate the amount properly he will need to know:

A. his outside basis

B. his inside basis

C. the at-risk amount

D. A and C

E. A, B, and C.

3. the effect of form 1245 is to

A. reduce the amount of gain or loss recognized to only the form 1231 amount

B. re-characterize a gain as ordinary to the extent of excess depreciation taken

C. re-characterize gain or loss as capital to the extent of depreciation taken

D. re-characterize the gain or loss as ordinary to the extent of depreciation taken

4. the marginal tax rate is

A. the tax rate that applies to the next dollar of income or deduction for a taxpayer

B. total tax divided by taxable income

C. total tax divided by total income

D. the change in tax divided by total income

E. none of the above

5. the difference between the at-risk amount and basis is:

A. qualified nonrecourse debt

B. nonrecourse that is not qualified

C. recourse debt

D. contribution of property when FMV>Basis

E. any kind of debt

6. which of the following is not a requirement to deduct a business expense?

A. typical and repetitive in nature

B. ordinary

C. necessary

D. reasonable

E. all of the above are required to deduct a business expenses.