QUESTION 1 How do we calculate the MI state withholding taxes? a. (gross - (exemptions + $77)) * 6.2% b. (gross - (exemptions + $77)) * 4.25% c. 4.25% of gross or taxable wages d.(gross - (exemptions * $77)) * 1.45% QUESTION 2 Which of the following is true regarding partnerships? a. when a partner enters or leaves the partnership, it creates a legal dissolution but may not create an accounting/financial dissolution b.each partner has a claim against the assets equal to his or her capital balance c. all are true d. partnership assets are co-owned by the partners QUESTION 3 How do we determine the federal withholding taxes? a. 1.45% of gross or taxable wages b.6.2% of gross or taxable wages c. according to the federal tax tables d. 6.2% of gross or taxable wages up to $117,000 QUESTION 4 When noncash assets are contributed to a partnership, which of the following is true? a. contributing partner capital account is credited for the net realizable value of any A/R b.contributing partner capital account is credited for the fair market value of the asset minus any liability against it that the partnership assumes c. partnership assumes any liability attached to the property contributed d. all are true QUESTION 5 In the absence of a partnership agreement, the law states that income and losses will be distributed a. according to salaries based on time dedicated to the partnership b.according to partnership interest c. equally, regardless of capital balance or partnership interest d.according to capital balances QUESTION 6 Which of the following is a disadvantage of a partnership? a. automatic legal dissolution when a partner enters or leaves b.unlimited liability c. mutual agency d. all are disadvantages QUESTION 7 Which of the following accounts is not used when forming a partnership? a. A/D - Equipment b. Equipment c. Net AR d. Machinery