The general rule regarding income and expense items of a partnership and their classification is:

Question

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The general rule for income and expense items of a partnership is that they should be "separately stated" if they may be treated differently at the partner level. This means that each partner must be able to determine their share of each item separately for tax purposes. However, if there are income or expense items that are considered ordinary, they can be treated as such without separately stating them. Option A and D are incorrect because not all items are either ordinary or capital. Option C is incorrect because it does not reflect the general rule for classification of income and expense items.

The General Rule Regarding Income and Expense Items of a Partnership