Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1CC
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What are special allocations?
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Special allocation for a business is considered as distributing profits and losses among members in the manner that doesn't match to the associates' real proprietorship interests. There are numerous genuine reasons for businesses to organize this, but the Internal Revenue Service (IRS) also recognizes that trades can utilize a special allocation so as to improperly reduce the tax liabilities of its members.
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