uestion 3 of S. ark and Matt co-own an auto repair shop 50 50. They each schedul
ID: 2342642 • Letter: U
Question
uestion 3 of S. ark and Matt co-own an auto repair shop 50 50. They each schedule their own cust rs, use their own tools and supplies, and collect payments hom their own customers Thiy each har ofthe antes and tho property tais OMark and Mat are a partnership because they co-own the business and both work at the location. O Mark and Matt are co-owners of the property but run their businesses independent of each other. They spit certan building expenses. They are not a parmership. O Mark and Matt are a partnership and must fle a Fom 1065 and Mamust fle as a tership and set up a formal agreement because tey spe Pecoeofthe utit" and Peperty an oMark for follow up
Explanation / Answer
Answer is option B
Mark and Matt are co-owners of the property but run their business independent of each other. They split certain building expenses. They are not a partnership.
Explanation :
The object of partnership is to enter into some business and earn profits. Here, there is no business purpose and objective of earning profits between Mark and Matt. Co-ownership is not meant for business purposes. There is simply ownership of a property by more than one person.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.