1. Interest from state and local government bonds is exempt from federal income tax; however, the interest is included in the calculation of E&P.

True

False

1. When the partnership and its partners do not use the same tax year, the tax laws require that each partner's allocable share of partnership items be reported in that partner's tax year that includes the year-end of the partnership.

True

False

3- A partner never recognizes a loss when he receives a current distribution from the partnership.

True

False