Question: Because guaranteed payments are treated the same as a payment to a non-partner, they: A. Will never decrease the partnership's ordinary income below zero. B.

Because guaranteed payments are treated the same as a payment to a non-partner, they: 


A. Will never decrease the partnership's ordinary income below zero. 

B. Are deducted against ordinary income first and then against separately stated income. 

C. Require the partnership to issue a Form 1099-MISC. 

D. Are generally deducted as a business expense by the partnership.

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

B Are deducted against ordinary income first and then against separately ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Your client is a self-employed attorney who is considering the purchase of a $65,000 automobile that \Viii be used 80% for business. a. What depreciation method and recovery period are used under...

Q:

A factor level is the same as a treatment. Is this statement always true? If not, what conditions are necessary for it to be true?

Q:

Is a net operating loss incurred in 2017 treated the same as a net operating loss incurred in 2020? Explain.

Q:

What other instrument is the same as a five-year zero-cost collar in which the strike price of the cap equals the strike price of the floor? What does the common strike price equal?

Q:

Perform the following tasks and document them in the ABC Risk and Material Memo Template Word document. Preliminary Inherent Risk Assessment - Review the description of ABC Appliances, Inc. and...

Q:

7 In I25 of the CatastropheCoverageLowActivity worksheet calculate the Potential Cost to the Insured for the individual claim. This is the sum of the Copayment, the Payment towards the Deductible,...

Q:

VIEW THE STEP-BY-STEP SOLUTION TO: Title: ABC Appliance Inherent Risk and Control Design Assessment Prepare Inherent Risks and Control Design Assessment. This course project/case... I.Title: ABC...

Q:

Whether the statement is true or false. ____ 1. Employers do not pay payroll taxes on payments made to independent contractors. ____ 2. The FICA tax rates and taxable wage bases are exactly the same...

Q:

Excerpts from Crozier Industries' financial record as of December 31, 2012, follow: The amount shown do not include any tax effects. Crozier's tax rate is 35 percent. Assume that all items are...

Q:

Excerpts from Crozier Industries financial records as of December 31, 2015, follow: The amounts shown do not include any tax effects. Croziers tax rate is 35 percent. Assume that all items are...

Q:

Excerpts from Crozier Industries financial records as of December 31, 2018, follow: The amounts shown do not include any tax effects. Croziers tax rate is 35 percent. Assume that all items are...

Q:

: Solve the following equation. (1+ 2i)z? + (3+ 4i)z + (5 + 6i) = 0 %3D

Q:

What in your opinion will be the major impact of the Wal-Mart decision to purchase FOB from its suppliers? The current stated objective is to reduce transportation costs on freight inbound to...

Q:

Express 1 ( 1 x 4 ) as the sum of a power series and find the interval of convergence. Solution We have the following equation. 1 1 - x = 1 x x 2 x 3 cdots = n = 0 x n , | x | 1 Replacing x by - x 4...

Q:

Is stability really a strategy or just a term for no strategy?

Q:

Tesla Motors manufactures high performance electric vehicles that are extremely slick looking. Exhibit 3.20 presents the statement of cash flows for Tesla Motors for 2010-2012. Required Discuss the...

Q:

The unadjusted trial balance for Swift Creek Engineering at its year end, December 31, 2017, is as follows: Additional information: 1. Revenue of $10,440 was earned but unrecorded and uncollected as...

Q:

Trout Company uses a perpetual inventory system and made purchases and sales of a particular product in 2014 as follows:. Required: 1. Calculate the total goods available for sale (in units and...

Q:

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit...

Q:

Review the following Educational Blog: https://uncomplicated.com/b-e-s-t-blog/f/florida-best-mathematical-thinking-and-reasoning-standards Review the section addressing: MA.K12.MTR.2.1 Demonstrate...

Q:

Which statement is true regarding guaranteed payments to partners? Federal income taxes are withheld from guaranteed payments to partners Guaranteed payments are treated as partner distributions and...

Q:

Which of the following statements does not accurately describe guaranteed payments to a partner? A. Guaranteed payments for services are subject to self-employment tax. B. Guaranteed payments are...

Q:

Which of the following statements does not accurately describe guaranteed payments to a partner? A. Guaranteed payments for services are subject to self-employment tax. B. Guaranteed payments are...

Q:

Because guaranteed payments are treated the same as a payment to a non-partner, they: A. Will never decrease the partnership's ordinary income below zero. B. Are deducted against ordinary income...

Q:

Homework 10 Instruction Comprehensive Problem 10-1 Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns...

Q:

Ryan Ross (111-11-1111), Oscar Oleander (222-22-2222), Clark Carey (333-33-3333), and Kim Kardigan (444-44-4444) are equal members in ROCK the ages, LLC. ROCK serves as agents and managers for...