If a Partner Contributes Property to a Partnership,and That Property

question 111

True/False

If a partner contributes property to a partnership,and that property is subject to a liability,the noncontributing partners increase the basis of their partnership interests by their share of the partnership liabilities that were transferred to the partnership.

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Definitions:

Continental Crust

The thick, generally granitic part of the Earth's crust that forms the continents and continental shelves, distinguished from the denser, thinner oceanic crust.

Oceanic Crust

The outermost layer of Earth's lithosphere that lies beneath the oceans, composed mainly of basalt rock formed from volcanic processes at mid-ocean ridges.

Mantle

The most voluminous layer of Earth; located below the crust and above the core.

Thickest Crust

Refers to the part of the Earth's crust that has the greatest thickness, typically found in continents, especially under mountain ranges.