20-25

All income/gain and expense/loss items affect a partner's basis in his or her partnership interest. True False Ordinary income from a partnership is not considered self-employment income. True False Partnership income or toss and separately stated items are reported to the individual partners via Schedule K-1. True False All income and expense items of a partnership that may be treated differently at the partner level must be "separately stated." True False Partnership income and losses are divided into two components; ordinary items and separately stated items. True False If Casey's partnership basis is only $100,000 and Cherie's basis is $200,000, there is no way both Casey and Cherie can be equal partners at 50% each in the partnership. True False