What is the rule of offset? a) Loans to partners should be offset against their debit capital balances before they receive any cash distributions b) Loans from partners should be offset against their debit capital balances before they receive any cash distributions c) Loans from partners should be offset against their credit capital balances before they receive any cash distributions d) Receivables from partners should be offset against their debit capital balances before they receive any cash distributions

What is the rule of offset? a) Loans to partners should be offset against their debit capital balances before they receive any cash distributions b) Loans from partners should be offset against their debit capital balances before they receive any cash distributions c) Loans from partners should be offset against their credit capital balances before they receive any cash distributions d) Receivables from partners should be offset against their debit capital balances before they receive any cash distributions

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 8DQ

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What is the rule of offset? Loans from partners should be offset against their debit capital balances before they receive any cash distributions Loans to partners should be offset against their debit balances before they receive any cash distributions Receivables from partners should be debit against their capital balance before they receive any cash distributions Loans from partners should be offset against their credit capital balances before they receive any cash distributions
What is the rule of offset? a. Loans from partners should be offset against their debit capital balances before they receive any cash distributions b. Loans to partners should be offset against their debit balances before they receive any cash distributions c. Receivables from partners should be debit against their capital balance before they receive any cash distributions d. Loans from partners should be offset against their credit capital balances before they receive any cash distributions
What is Koothrapali’s capital balance after adjustments but before making any cash investment or withdrawal? How much cash shall Koothrapali invest (withdraw) to comply with the partnership agreement?
Which of the following is an expense of a LLP? إختر أحد الخيارات: a. Interest on loans from partners to the partnership. b. Interest on partners’ capital account balances. c. Interest on loans to partners from the partnership. d. interest on notes receivable
One of the final steps in terminating a partnership is the distribution of remaining assets to the partners after all obligations have been met. What is the basis for distributing any remaining assets/cash among the partners? How would loans from partners affect the distribution of partnership assets?
Is there any situation wherein profit and loss ratio may be used as the basis of cash payments to partners? Explain.
The purpose of preparation of partners' capital account is: a. To know the balance of capital of each partner b. To know the balance of goodwill of each partner c. To know the balance of drawings of each partner d. To know the interest on loan of each partner
Choose the response that correctly describes a guaranteed payment. (a) A loan payment from the partnership to pay back a loan from a partner. (b) A loan payment from the partner to pay back a loan from a partnership. (c) A payment made to a partner from the profits of the partnership. (d) A payment made to a partner without regard to the income of the partnership
Guaranteed payments to partners go on what two lines of the form 1065? what type of interest goes on line 5 of schedule k? what type of dividends go on line 6a of schedule k? what type goes on line 6b? Does line 6a include those on line 6b?
Which of the following items decreases a partner's at-risk basis? A borrowed amount, secured by property used outside the activity, contributed to the partnership by a partner. Cash contributed to the partnership by the partner. Cash distributed to the partner by the partnership. The partner's distributive share of net gains from the partnership.
Select for each of the following either "Yes", it is a guaranteed payment or "No", it is not.\\n\\n1. An amount paid to a partner for the performance of services. \\n2. An amount paid each year to the partners as a return on their investment in the partnership. \\n3. An amount paid that is comparable to a salary or interest payment. \\n4. Payments that are generally not deductible. \\n5. Payments that can result in a loss to the entity. \\n\\nb. Complete the statements below regarding the reporting of guaranteed payments on Form 1065 and its various schedules.\\n\\nGuaranteed payments are \\n on Form 1065. These amounts are also shown on \\n as an item that must be allocated to the partners for them to report as ordinary income. Therefore, in the partnership's "book-tax reconciliation" on \\n, the guaranteed payments are added to book income so that the two measures of the partnership's income can be equal.\\n\\nc. Complete the statement below regarding the reporting of guaranteed…
If a partner with a debit capital balance during liquidation is solvent, the * a. Partner must invest additional assets in the partnership b. Partner’s debit balance will be allocated to the other partners c. Other partners will give the partner enough cash to absorb the debit balance d. Partnership will loan the partner enough cash to absorb the debit balance