Chapter 10 Homework

Chapter 10 Homework - What is Clover's share of the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 Homework 1. A general partner usually cannot be held personally liable for the debts arising from the partnership business. True False 2. On June 1, Jefferson had a basis in his partnership interest of $75,000. On June 2, he received a cash distribution from the partnership of $28,000. All of the cash distribution is taxable. True False 3. A limited liability company with more than one member is generally considered a partnership for federal tax purposes. True False 4. Corporations cannot be shareholders in a Subchapter S corporation. True False 5. The shareholders of a Subchapter S corporation must pay self-employment tax on their share of the corporation's ordinary income. True False 6. Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows:
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: What is Clover's share of the partnership's ordinary income and guaranteed payment? A. Ordinary income, $30,000; Guaranteed payment, $10,000 B. Ordinary income, $20,000; Guaranteed payment, $10,000 C. Ordinary income, $30,000; Guaranteed payment, $30,000 D. Ordinary income, $20,000; Guaranteed payment, $30,000 7. General Partners are considered self employed. True False 8. Subchapter S Corporations must file corporate tax returns and pay any necessary taxes. True False 9. Steve and Jim formed a partnership on January 1 with cash contributions of $600,000 and $400,000, respectively. The partners agree to share profits and losses equally. The partnership immediately borrowed $200,000. What is Jim's tax basis in his partnership interest? A. $300,000 B. $400,000 C. $500,000 D. $600,000 10. General Partners should withhold social security tax on their guaranteed payments. True False...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern