Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 40

Go to the website www.napico.com and click on "Partnership Financial Information-Click Here." Then click on "2010 Annual Reports" to access the annual report for National Tax Credit Investors II (NTCI II).
Read the financial statements contained in the 2010 annual report and the accompanying notes, especially any that discuss the partnership form of organization.
Assume that an investor is considering investing in this partnership and has downloaded this report for study and analysis.
Required
1) What differences between NTCI II's financial statements and those of an incorporated entity exist
2) Assume that this potential investor is not aware of the potential implications of owning a partnership rather than a corporation. What information is available in these statements to advise this individual of the unique characteristics of this legal business form