Which of the following is true of a partnership?

Select one:

a. All partnerships must have a partnership agreement

b. None of the answers are correct

c. Assessable income less deductions equals taxable income

d. All partnerships must lodge an income tax return

e. A partnership is not directly liable for income tax

Which of the following is allowed as a deduction of a partnership?

Select one:

a. Interest paid to partners on capital balances

b. None of the answers are correct

c. Salaries paid to partners according to a partnership agreement

d. A capital loss on the disposal of a partnership asset

e. Interest paid to partners on loan