Question: answer below true or false. 1. Partners are taxed on their withdrawals, not on their share of partnership income. 2. The capital balances method allocates

answer below true or false.

1. Partners are taxed on their withdrawals, not on their share of partnership income.

2. The capital balances method allocates income and loss based on the ratio of each partners relative capital balance.

3. Accounting procedures for income tax expense and liabilities are the same for C corporations and S corporations.

4. In a limited partnership the general partner has unlimited liability.

5. Partners' withdrawals are debited to their separate withdrawals accounts.

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