Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
Income Tax Fundamentals 2020 (with Intuit Proconnect Tax Online)
38th Edition
ISBN: 9780357108239
Author: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Publisher: Cengage Learning
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Chapter 10, Problem 23MCQ
To determine

Introduction: Partnership forms when more than one person thrives to achieve the same objective as a business. The only difference between a partnership and a corporation is that the corporation will enjoy the benefits of limited liability but faces dual taxation first at the company level and second at the shareholders level, whereas in partnership, partnerships are taxed only at the partners level. Registration of partnership is not mandatory as it can be formed by mere handshake only. To carry a partnership with limited liability, it is important to register the business as a “limited liability partnership”.

To choose: The difference between partnership and an LLC.

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Statement of Financial position as at September 30 for 2023 and 2024                    Assets                                                                                              2023                        2024 Cash and equivalents……………………………………….                 $56,100              $37,694 Receivables, Trade, less allowances of $1,104 and $991 respectively    47,753                 37,645 Other Receivables……………………………………………………          233                     516 Inventories……………………………………………………………    29,587                23,202 Prepaid expenses and other…………………………………………..       4,739                  4,143 Total current assets…………………………………………………...   138,412              103,200   Property, plant and equipment, at cost……………………………….    314,880              298,609 Less accumulated depreciation……………………………………….  (225,406)            (211,494) Property, plant and equipment net……………………………………      89,474                87,115 Other assets Goodwill……………………………………………………………...…
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