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:

Cognitive Component

The aspect of attitudes and beliefs that involves the mental processing of knowledge, information, and belief systems.

Physiological Component

Refers to the physical and biological aspects that contribute to an organism's functions and processes.

Behavioural Component

The aspect of attitudes which pertains to the way we act or behave towards an object or situation.

Autonomic Arousal

The activation of the autonomic nervous system, which can result in physiological reactions such as increased heart rate or sweating, often due to stress or excitement.