1. All of the following are tax ramifications associated with the creation of a family limited partnership except:
a. Gain or loss must be recognized when property is transferred into the partnership.
b. The income tax is never paid by the partnership.
c. The value of the general partner’s interest in the family limited partnership will be included in the general partner’s estate.
d. Transfer of interests in the family limited partnership are gifts for gift tax purposes.
2. Exactly 6 years ago, Joe borrowed $300,000 at 6.0% p.a. on a 25 year mortgage with monthly payments of $1,932.90. What is the balance on Joe’s mortgage today?
A. $261,972.74
B. $262,592.67
C. $263,209.52
D. $269,795.67