Ordinary Income May Result If a Partnership Has Unrealized Receivables

question 1

True/False

Ordinary income may result if a partnership has unrealized receivables or inventory items when a partnership interest is sold.

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Definitions:

Acquisition

Acquisition refers to the initial stage of learning or conditioning process where a response is first established and gradually strengthened.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Extinction

In behavioral psychology, the process through which a learned response is diminished or diminishes over time following the removal of reinforcement.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.