QuestionFebruary 3, 2026

Indicate whether the following statements are "True" or "False" regarding income from partnerships, S corporations trusts, and estates. square square a A partnership is a separate taxable entity. a A small business corporation may elect to be taxed similarly to a partnership. c. Each partner reports his or her distributive share of the partnership's income and deductions for the partnership's tax year ending in or with the partner's tax year. d. The beneficaries of estates and trusts generally are taxed on the income eamed by the estates or trusts that is actually distributed or required to be distributed to them. square square

Indicate whether the following statements are "True" or "False" regarding income from partnerships, S corporations trusts, and estates. square square a A partnership is a separate taxable entity. a A small business corporation may elect to be taxed similarly to a partnership. c. Each partner reports his or her distributive share of the partnership's income and deductions for the partnership's tax year ending in or with the partner's tax year. d. The beneficaries of estates and trusts generally are taxed on the income eamed by the estates or trusts that is actually distributed or required to be distributed to them. square square
Indicate whether the following statements are "True" or "False" regarding income from partnerships, S corporations trusts, and estates.
square 
square 
a A partnership is a separate taxable entity.
a
A small business corporation may elect to be taxed similarly to a partnership.
c. Each partner reports his or her distributive share of the partnership's income and
deductions for the partnership's tax year ending in or with the partner's tax year.
d.
The beneficaries of estates and trusts generally are taxed on the income eamed by
the estates or trusts that is actually distributed or required to be distributed to them.
square 
square

Solution
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Answer

a. False ### b. True ### c. True ### d. True Explanation 1. Evaluate statement a A partnership is not a separate taxable entity. Instead, it is a pass-through entity where income is reported by the partners. **False** 2. Evaluate statement b A small business corporation can elect to be taxed as an S corporation, which is similar to a partnership. **True** 3. Evaluate statement c Each partner reports their share of the partnership's income and deductions for the partnership's tax year ending in or with the partner's tax year. **True** 4. Evaluate statement d Beneficiaries of estates and trusts are taxed on income that is distributed or required to be distributed to them. **True**

Explanation

1. Evaluate statement a<br /> A partnership is not a separate taxable entity. Instead, it is a pass-through entity where income is reported by the partners. **False**<br /><br />2. Evaluate statement b<br /> A small business corporation can elect to be taxed as an S corporation, which is similar to a partnership. **True**<br /><br />3. Evaluate statement c<br /> Each partner reports their share of the partnership's income and deductions for the partnership's tax year ending in or with the partner's tax year. **True**<br /><br />4. Evaluate statement d<br /> Beneficiaries of estates and trusts are taxed on income that is distributed or required to be distributed to them. **True**
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