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When past profits of a partnership are distributed to the partners, the profits are... A. Not subject to tax. B. Added to each partner's equity

When past profits of a partnership are distributed to the partners, the profits are...

A. Not subject to tax.

B. Added to each partner's equity or capital account.

C. Taxed in the hands of the partners.

D. Taxed to the partners like dividends, since the distributions represent after-tax profits.

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