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4. When past profits of a partnership are distributed to the partners, the profits are... A Taxed in the hands of the partners. B Added

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4. "When past profits of a partnership are distributed to the partners, the profits are... A Taxed in the hands of the partners. B Added to each partner's equity or capital account. C Not subject to tax. D Taxed to the partners like dividends, since the distributions represent after-tax profits. E none of the above

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