A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentag

Question

Varvara68 [4.7K]

3 years ago

5

A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentag

e ownership of partnership profits in order to meet the substantial economic effect tests.1. True
2. False

Business

1 answer:

olga_2 [115] · Answer 1 · 2022-01-18T15:50:30+03:00

Answer:

A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentage ownership of partnership profits in order to meet the substantial economic effect tests.

True

Explanation:

Equity and equality must be put in place as a yardstick to allocate such which would bring a common ground for both parties.