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    fpsb's Avatar
    fpsb Posts: 18, Reputation: 0
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    #1

    Jan 28, 2009, 02:48 PM
    Corporations, proprietorships, and partnerships
    A major difference among corporations, proprietorships, and partnerships is that a corporation's income statement reports income tax expense

    True or false?

    I think it is false.
    MLSNC's Avatar
    MLSNC Posts: 158, Reputation: 17
    Junior Member
    		  
    #2

    Jan 28, 2009, 06:41 PM

    I would say that the statement is true. Partnerships and proprietorships generally don't show an income tax expense.
    Cynthia514's Avatar
    Cynthia514 Posts: 37, Reputation: 1
    Junior Member
    		  
    #3

    Jan 30, 2009, 01:29 PM
    And that's what my textbook says also, the only one has to count the income tax expense is corporations.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #4

    Jan 30, 2009, 01:53 PM

    Because in the other two the income is personal income of the owners and therefore they pay the tax on their personal returns.
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