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    Book Income to Taxable Income

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    What is the need for reconciling the book income for a partnership to taxable income for tax purposes?

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    What is the need for reconciling book income for a partnership to taxable income for a partnership for tax purposes?

    The reason that a partnership has to reconcile their book income to their taxable income for tax purpose is that it is impossible to analyze a partnership's financial statements and tell what the organization's tax bill will be for the year. Another reason for them to reconcile their book income to their tax income is so that the actual profits can be reported to the Internal Revenue Services (IRS) with less discretion in calculations, ...

    Solution Summary

    This solution explains the reason why a partnership must reconcile the book income to taxable income.

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