egarding a partnership, which of the following statements is/are always correct? If a partnership is an active trade or business and it has a $65,000 loss from its business operations that is passed-through as an active loss to its partners, each active partner can deduct his full share of loss for the year to the extent they have basis that is at-risk. I. Salaries and bonuses paid to partner-employees (other than guaranteed payments) are a deductible business expense. Da. Only statement II is correct. Ob. Only statement I is correct. Dc. Both statements are correct. d. None of these statements are correct.

egarding a partnership, which of the following statements is/are always correct? If a partnership is an active trade or business and it has a $65,000 loss from its business operations that is passed-through as an active loss to its partners, each active partner can deduct his full share of loss for the year to the extent they have basis that is at-risk. I. Salaries and bonuses paid to partner-employees (other than guaranteed payments) are a deductible business expense. Da. Only statement II is correct. Ob. Only statement I is correct. Dc. Both statements are correct. d. None of these statements are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Incredible and Joyful are partners who share profit on a 60:40 ratio. At the end of 2021, the partnership books showed a net income of P150,000. It was disclosed however that the following errors and omissions were noted (see image below). How much is the total effect of the above errors in the capital of the partnership?
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