During the current year, a calendar year corporation has a $$200,000$ deficit in current earnings and profits. It had $$300,000$ in positive accumulated earnings and profits at the beginning of the year. The corporation distributes $$350,000$ to its sole shareholder on December $31.$

How much dividend income should this shareholder recognize?

$$100,000$

$$250,000$

$$300,000$

$$$$350,000$

In which type of business entity are the partners personally liable for malpractice committed by other partners?

$$ General partnership

$$ Limited liability company

$$ Limited partnership

$$ C corporation

What is true regarding the taxation of a partnership?

$$ The partnership is a non$-$taxpaying entity.

$$ The partnership is assigned a tax method by the IRS

$$ The partnership is subject to two layers of income tax.

$$ The partnership allows each partner to report total partnership income as their own.

If a mortgaged property is contributed to a partnership, how will it affect the contributing partners' basis?

$$ Each partner's basis will decrease by the total amount of the mortgage.

$$ Each partner's basis will be decreased by their ownership proportion of the mortgage.