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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...
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- Summer '11
- Corporation, Limited Liability Company, S corporation, HSC Partnership