When a Partner Receives a Salary Allowance as Part of His/her

Multiple Choice

When a partner receives a salary allowance as part of his/her partnership agreement this mean.

A) The partner donates part of his salary to the partnership in exchange for an ownership interest.
B) The partner will be allocates a portion of the income or loss based on this salary figure.
C) The partner will receive a check for this salary if the company has a profit.
D) The partner will be paid that salary for the year regardless of whether the partnership generates income or loss.