ACC 426 Exam 3 (Partnerships and Payroll Issues) | Questions And Answers Latest {2024-
2025} A+ Graded | 100% Verified
When is the due date for calendar year end partnerships? - April 15th
The partnership of Crumbacher & Rossell wants to become a Limited Liability Company. With what
agency will they apply for LLC status? - Secretary of State in state they are located
What form must be filed by partnerships annually? - 1065
Which of the following entities cannot issue a Form W-2 to its owners? - Partnership
Which of the following entities can discriminate allocations of income among various owners without
regard to ownership interest? - Partnerships
Which of the following owners would not have limited liability concerning loss of their personal assets to
pay company debts? - General partners
Larry and Mary plan to start a new business. In which of the following business structures would they be
possibly subjected to self-employment taxes on their personal 1040s? - Partnerships
Liz is a partner in a general partnership. During 2015, she received cash distributions of $50,000 but her
K-1 only indicates allocated income of $20,000. Which of the following statements is true? - She will be
taxed only on $20,000
Which of the following would be included on the tax returns for most partnerships and corporations? -
Balance sheet
Which of the following entities cannot be publicly traded? - S-Corporations
, Jan is a general partner (and actively involved) in Justice Ventures. According to her K-1, she needs to
report $40,000 in income from operations, $1,000 in interest and $600 in capital gains. How much will
she need to report for self-employment taxes? - $40,000
Peter and Greg form a partnership on January 1, 2015. Greg contributes $3,000 in cash while Peter
contributes $2,000 in equipment. During the year, Greg takes withdrawals of $2,000 and Peter makes
withdrawals of $1,000. They split $100,000 in net income evenly between them. What is Greg's basis at
the end of 2015? - $51,000
The partnership of McCullough & Crawford pays for the health insurance for each partner. How should
this be reported? - The health insurance would not be deductible by the partnership. The partners
would individually report the insurance on their personal tax returns.
Which of the following calculations would not be shown on the tax return for partnerships? - Cash Flow
Statement
Pissos Corporation began business in 2015. They incurred $43,000 in start-up expenditures. How much
can they deduct immediately before amortizing the rest? - $5,000
Marcia is a limited partner in Liberty Ventures. She is not actively involved in the business. According to
her K-1, she needs to report $40,000 in income from operations, $1,000 in interest and $600 in capital
gains. How much will she need to report for self-employment taxes? - $0
Carolyn is a general partner in the firm of Earth, Moon and Sun. Prior to the beginning of 2015, her basis
is $40,000 and she is personally liable for $32,000 of the company's liabilities. During 2015, she is
allocated $50,000 in losses. She did not take any distributions during the year. How should she report
this on her personal tax return? - Ordinary loss of $50,000
Marty and Janet are partners in a general partnership that provides consulting services. Marty receives
guaranteed payments pf $20,000 and then they split the remaining profit of $100,000 evenly. Which of
the following statements is correct? - Marty would be subject to self-employment taxes on $70,000
Which of the following would not be separately stated on a Form K-1? - Rent Expense
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