Question
hich one of the following statements pertaining to the tax implications of a partnership is incorrect ? a.Business losses of a partnership can be allocated
hich one of the following statements pertaining to the tax implications of a partnership isincorrect?
a.Business losses of a partnership can be allocated to the partners for them to deduct from their other sources of income.
b.Charitable donations made by a partnership are not deductible by the partnership, despite the fact that partnerships are not taxable entities and, therefore, cannot obtain a tax credit.
c.Dividends received by a partnership are grossed up by the partnership in the calculation of its income which is allocated to the partners.
d.Salaries to partners are not deductible by the partnership in the computation of its income.
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