Which of the Following Statements Exemplifies the Entity Theory of Partnership

Multiple Choice

Which of the following statements exemplifies the entity theory of partnership taxation?

A) Partnerships are taxable entities.
B) Partnerships determine the character of separately stated items at the partnership level.
C) Partnerships make the majority of the tax elections.
D) Both partnerships are taxable entities and partnerships make the majority of the tax elections.
E) Both partnerships determine the character of separately stated items at the partnership level and partnerships make the majority of the tax elections.