Answer:
D. Partners are taxed on their allocable share of income whether it is distributed or not.
Explanation: partnership is a business entity formed by two or more persons bring their resources together to form both the needed capital and other requirement. Both
Partnership and sole proprietorship do not pay tax as a business. But a partner is taxed according to its own allocable share of income wherether it is distributed or not. In partnership their two main class of partners which includes the General partner and the Limited partner.
