(a)Various elections must be made to compute a partnership's taxable income. For example, the partnership's tax year...
Question:
(a)Various elections must be made to compute a partnership's taxable income. For example, the partnership's tax year and accounting method must be chosen. Elections regarding depreciation and Code Sec.179 expensing of assets also may have to be made. Who makes these elections?
(b) A calendar-year partnership is organized in April of the current year. It begins business in October of the current year. The partnership incurs and pays the following expenses during the last six months of the current year: $53,000 for legal and accounting fees in connection with forming the partnership and $45,000for brokerage and registration fees in Connection with issuing and marketing interests in the partnership. What options are available with respect to the $98,000 in partnership expenditures?
Database Processing Fundamentals, Design, and Implementation
ISBN: 978-0133876703
14th edition
Authors: David M. Kroenke, David J. Auer