An investor participates in a limited partner oil and gas drilling program organized as a Master Limited Partnership. How will this investor know his/her annual income tax liability for the partnership's profits?

An investor participates in a limited partner oil and gas drilling program organized as a Master Limited Partnership. How will this investor know his/her annual income tax liability for the partnership's profits? 





A) It is reported on the partnership's Form 1120 return
B) It is imputed from the partnership's income statement
C) It equals dividends received
D) It is reported on the partnership's Schedule K-1 information return








Answer: D