Question 5: Signify TRUE or FALSE as applicable for each of the following items as they pertain to allocation or partnership income and losses.

a. Allocation methods are dictated by state law.

b. Loss allocations must use the same methodology as income allocations.

c. If no allocation agreement exists, income and losses are allocated based on the partners' capital account balances.

d. A partner with a high initial investment must be allocated more income than a partner with a low initial investment.

e. A partner with a debit balance is his/her capital account cannot be allocated any income until the account no longer has a debit balance.