35) Income taxes to a partnership: an obligation to each partner since a partnership does not pay tax A) Are not B) Are an obligation of the partnership. C) Are an obligation to each partner based on their share of protits D) Are an obligation to each partner only when cash is reccived 36) Partners Able and Bable are in a partnership, which earna Net Income of $151,000. Able's share is $89,000 from the partnership, while Bable's share is $62,000 and Bable has Drawings during the year of $24,000. How much must Bable report in his income tax return as income? A) $62,000. B) 538,000. C) 589,000 D) $151,000 37) Interest paid belongs in the operntiaivities etion of the satement of cash Nows A) True B) False 38) The purchase o equipment for the manu facturing of inventory belongs in the operating activities facturing of inventory belongs in the opcrating activitics section of the statement of cash flows. A) True B) False An analysis of Korman Corporation' s Investment in Marketable Securities account during 2015 disclosed the following: Debt entries $160,000 240,000 Credt entries Korman's 2015 income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash. 39) Refer to the information above. The amount of cash paid by Korman Corporation in 2015 for the purchase of marketable securities was: A) $200,000. B) $240,000. C) S160,000 D) $190,000 40) Refer to the information above. The cash proceeds received by Korman Corporation in 2015 for t sale of marketable securities was: C) $280,000. D) $240,000 A) 3160,000. B) $230,000. A-6