CHAPTER 11 Partnerships: Distributions, Transfer of Interests, and Terminations
1136. A property distribution from a partnership to a partner is generally taxable to the partner. a. True *b. False 1137. For Federal income tax purposes, a distribution from
Mabel and Alan, who are in the 35% tax bracket, recently acquired a fast-food franchise.
Each of them will work in the business and receive a salary of $175,000. They
anticipate that the annual profits of the business, after deducting salaries, will be