Section Review

These questions are designed to review the information in this section and test your knowledge of the key points. Select the appropriate answer to each of the following questions:

1. Which of the following is NOT a valid partner type?

General
Domestic
Foreign

2. Which of the following is NOT true regarding meals and entertainment expenses?

The expenses should be entered in full
The program limits the amount entered to 50%
The program carries the disallowed portion to Schedule M-1
The total amount is reported on each K-1

3. By default, the program uses _____________ to calculate the ending balance of accumulated depreciation.

Federal tax depreciation
Book depreciation
ACE depreciation

4. Under the weighted-average method, the income, expenses, etc., of the partnership are prorated based on:

   The number of days during the year each partner held an interest in the partnership
   The number of periods that partners participated
   365 days

5. What should you do before specially allocating items?

Print the balance sheet
Calculate allocation amounts and percentages based on the end of year profit sharing percentage
Ensure all totals have been entered for the partnership to complete the Schedules K and M-1/M-2

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