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Sedbober [7]
3 years ago
10

Which of the following is correct? a. An individual is a reporting entity but not a taxable entity. b. A partnership is a taxabl

e entity and a reporting entity. c. A partnership is a reporting entity but not a taxable entity. d. A corporation is a reporting entity but not a taxable entity.
Social Studies
1 answer:
loris [4]3 years ago
6 0

Answer:

The correct answer is:

C. Partnerships is a reporting entity but not a taxable entity.

Explanation:

Individuals are reporting entities and taxable entities, so a is incorrect. A partnership is not a taxable entity, but partnerships are reporting entities. Because partnerships report their accountant numbers but don't pay direct taxes. However, the individuals in that partnership declare their income and are taxed on their individual earnings. Corporations have to report and get taxed over their income. So the correct option is C.

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