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Mila [183]
3 years ago
15

A correct statement concerning a real estate limited partnership is that: (A) The ordinary and necessary expenses of the general

partner(s) in operating the business are completely nondeductible. (B) Management expertise and economic soundness are among the factors that should be considered in evaluating real estate limited partnerships. (C) Hard costs such as those incurred by a partnership in acquiring land are wholly deductible as they occur. (D) A corporation cannot be a general partner since a corporation has limited liability.
Business
1 answer:
Solnce55 [7]3 years ago
7 0

Answer:

(B) Management expertise and economic soundness are among the factors that should be considered in evaluating real estate limited partnerships.

Explanation:

The limited partnership in a real estate allows to have a general partner if there is no conflict of interest, it do not impose any restriction on a corporation having limited liability.

Further all the operating costs are wholly deductible and the costs associated with acquiring land are not deductible.

Management shall be expert in the work they perform also their soundness to business provides extra benefit to real estate business, as it is all about getting maximum contracts.

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Answer:

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Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.

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It does not included fixed cost like depreciation.

As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.

Therefore, the correct option is

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