Preferred dividends paid are not tax deductible

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Reference no: EM131994487

1. A limited partner:

has no personal responsibility for the debts incurred by the partnership.

is guaranteed a return of his or her entire investment in the partnership if the partnership terminates.

can manage the partnership's operations on a daily basis.

has no control over the daily operations of the partnership.

2. Which of the following statements are not correct?

Interest expense paid for short-term debt is tax deductible.

Interest expense paid for corporate bonds is tax deductible.

Common dividends paid are tax deductible.

Preferred dividends paid are not tax deductible.

Reference no: EM131994487

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