Go to the website www.napico.com and click on Partnership Financial InformationClick Here. Then click on 2010 Annual Reports to access the annual report for National Tax Credit Investors II (NTCI II). Read the financial statements contained in the 2010 annual report and the accompanying notes, especially any that discuss the partnership form of organization. Assume that an investor is considering investing in this partnership and has downloaded this report for study and analysis.

Required

1. What differences between NTCI IIs financial statements and those of an incorporated entity exist?

2. Assume that this potential investor is not aware of the potential implications of owning a partnership rather than a corporation. What information is available in these statements to advise this individual of the unique characteristics of this legal business form?