Bonanza Real Estate Ventures was formed under a state's version of the Revised Uniform Limited Partnership Act. It has three general partners and 1,100 limited partners. The limited partnership interests were offered to the general public at $5,000 per interest. Julie Kay purchased a limited-partnership interest. As such, she
A. Cannot assign her limited-partnership interest to another person without the consent of the general partners.
B. Is entitled to interest on her capital contribution.
C. Is a fiduciary vis-a-vis the limited partnership and its partners.
D. Must include her share of partnership profits in her taxable income even if she withdraws nothing.
Answer: D. Must include her share of partnership profits in her taxable income even if she withdraws nothing.
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