riley and layla are interested in forming a partnership but are concerned about the associated taxes. if the…

riley and layla are interested in forming a partnership but are concerned about the associated taxes. if the partnership agreement is set such that 80% of earnings go to riley and 20% go to layla, which of the following correctly describes how taxes will be paid on the earnings? (1 point)\n\nriley and layla will each pay personal income tax on the portion of earnings that is theirs.\n\nthe partnership itself will pay the tax on total earnings before the earnings are distributed to riley and layla.\n\nthe partnership itself will pay the tax on each portion of earnings after they have been distributed to riley and layla.\n\nriley and layla will each pay personal income tax on half of the partnerships total earnings regardless of how the earnings are distributed.

riley and layla are interested in forming a partnership but are concerned about the associated taxes. if the partnership agreement is set such that 80% of earnings go to riley and 20% go to layla, which of the following correctly describes how taxes will be paid on the earnings? (1 point)\n\nriley and layla will each pay personal income tax on the portion of earnings that is theirs.\n\nthe partnership itself will pay the tax on total earnings before the earnings are distributed to riley and layla.\n\nthe partnership itself will pay the tax on each portion of earnings after they have been distributed to riley and layla.\n\nriley and layla will each pay personal income tax on half of the partnerships total earnings regardless of how the earnings are distributed.

Answer

Answer:

A. Riley and Layla will each pay personal income tax on the portion of earnings that is theirs.

Brief Explanations:

In a partnership, the partnership itself does not pay income - tax. Instead, the partners pay personal income tax on their respective shares of the partnership's earnings based on the partnership agreement. Here, Riley gets 80% and Layla gets 20%, so they pay tax on their respective portions.