Red Corporation and Green Corporation are equal partners in the R & G Partnership.Red's tax year ends September
30th, and Green is a calendar year taxpayer.The greatest aggregate deferral of income would occur if the partnership used a calendar year for tax purposes.

Question

Quizplus · Accepted Answer

Since Green Corporation is a calendar year taxpayer, if the partnership adopts a calendar year for tax purposes, both partners will be able to defer the recognition of partnership income for the maximum amount of time possible. This will result in the greatest aggregate deferral of income.

Red Corporation and Green Corporation Are Equal Partners in the R