Partnership
The net share received by a partner in a general professional partnership is A. Part of his taxable income B. Exempt from income tax C. Subject to corporate tax D. Subject to final tax
A
Which of the following statements is correct? A. Partners of a taxable partnership are considered as stockholders and profits distributed to them by the partnership are considered as dividends. B. The share of each partner in net income of a taxable partnership shall be based on their capital contribution . C. The share of an individual partner in the net income of taxable partnership shall be equal to the share of a capitalist partner with the least capital contribution. D. The industrial partner shall contribute money and or property but not services.
A
If a partner on his own transactions, is on the cash method of accounting while the general professional partnership is on the accrual method of accounting, in the partner's determination of his taxable income for the year, he A. Must convert his income from the partnership into cash method B. Must convert his own income into accrual method C. Does not report his income from the partnership because the partnership is exempt from income tax D. Can consolidate his share in the net income of the partnership under accrual method with his own income under cash method
B
Statement 1- A CPA and a Dentist may form a GPP or an ordinary partnership Statement 2- Partnership and Corporations have separate juridical personalities distinct from the owners, as such partners and stockholders are not liable to creditors of business A. True, true C. False, true B. False, false D. True, false
B
Statement-1 The share of the partner in the net income of an OP is added on his own gross income. Statement-2 The share of the partner in the net income in GPP is also considered as passive Income. A. True, true C. False, true B. False, false D. True, false
B
As regards a general professional partnership, which of the following statements is correct? A. Treated like a corporation, hence it is subject to the corporate income tax B. It is exempt from income tax, hence it need not file an ITR C. Partners' share are subject to final tax D. Partners' share will be included in their respective ITRs whether distributed or not
D
As regards an ordinary partnership, which of the following statements is correct? A. Partners' share are subject to final tax, hence it not file an ITR B. Subject to improperly accumulated earnings tax C. Treated like corporations, hence partners have limited liability D. Partner's share even if distributed will not be included in their ITR
D
The following statements regarding taxable partnerships are correct, except A. They file quarterly and year-end income tax returns. B. They are subject to the rules on corporation for capital gain tax, final tax on passive income, normal income tax, minimum corporate income tax and gross income tax. C. The partners' share in the distributable net income is subject to final tax. D. They are subject to the improperly accumulated earnings tax.
D
The net shares received by a partner in a general co-partnership is A. Part of his taxable income B. Exempt from income tax C. Subject to corporate tax D. Subject to final tax
D
Which of the following statements is not correct? A. When the co-owners invest the income of the property co-owned in a business or any income producing properties or activities constituting themselves into a business partnership, such partnership is consequently subject to tax as a corporation. B. As a rule, a co ownership is mot subject to income tax because the activities of the co- owners are limited to the preservation and enjoyment of the property and the collection of the income there from. C. A co-owner is subject to income tax on his share in the net income of the co-ownership actually or constructively received. D. All partnerships, no matter how created or organized are considered corporations subject to corporate income tax.
D