Which of the Following Statements Is Always Correct Regarding Assets

question 86

Multiple Choice

Which of the following statements is always correct regarding assets acquired by a newly formed partnership? If a partner contributes:

• A) Depreciable property: the partnership treats the property as newly acquired depreciable property, and may
• Claim a § 179 deduction.
• B) Unrealized (cash-basis) receivables: the partnership will report a capital gain when the receivable is collected.
• C) Inventory (in the partner's hands): the partnership reports ordinary income if the property is held as a capital
• Asset and sold within five years of the contribution date.
• D) Land valued at less than its basis: the partnership reports a § 1231 loss if the property is sold at a loss.
• E) None of these statements is correct.

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Definitions:

Talent Pool Risk

The potential negative consequences associated with managing or relying on a group of skilled individuals, which can impact organizational goals and performance.

Leadership Risk

The potential for loss or adverse outcomes resulting from the actions or decisions of leadership within an organization.

Readiness Risk

The potential for loss or setbacks in a project or initiative due to a lack of preparation or resources.

Competency-Based

An approach that focuses on identifying and developing specific competencies—knowledge, skills, and behaviors—that are critical for success in a role or organization.