Question

In what order should the tests to determine a partnership's year end be applied? A. majority interest taxable year - least aggregate deferral - principal partners test. B. principal partners test - majority interest taxable year - least aggregate deferral. C. principal partners test - least aggregate deferral - majority interest taxable year. D. majority interest taxable year - principal partners test - least aggregate deferral. E. None of these.

Answer 1

Answer:

D

Step-by-step explanation:

The correct order is majority interest taxable year - principal partners test - least aggregate deferral.

A partnership has to consider 3 tests in the orders 1, 2 and 3, in determining it's appropriate year end.

1. majority interest taxable year

2. principal partners test

3. least aggregate deferral