Reference no: EM132725170

Problem 1: Which of the following is true of a partnership?

Select one:

a. All partnerships must lodge an income tax return

b. None of the answers are correct

c. A partnership is not directly liable for income tax

d. Assessable income less deductions equals taxable income

e. All partnerships must have a partnership agreement

Problem 2: Which of the following is allowed as a deduction of a partnership?

Select one:

a. Salaries paid to partners according to a partnership agreement

b. Interest paid to partners on capital balances

c. Interest paid to partners on loans

d. A capital loss on the disposal of a partnership asset

e. None of the answers are correct