Identify Which of the Following Statements Is True

question 21

Multiple Choice

Identify which of the following statements is true.

• A)The Hunter Partnership has a net long-term capital gain of $4,000 and a net short-term capital loss of $1,000 for the current tax year. The gain and loss will be netted and the partners will include their proportionate share of the $3,000 net long-term capital gain on their return.
• B)The Right Partnership sells a delivery truck and recognizes a gain of $2,000, which represents depreciation recaptured under Sec. 1245. The $2,000 gain will retain its identity as a separately stated item.
• C)For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis.
• D)All of the above are false.

---

Definitions:

Low-Power Transmitters

Electronic devices designed to broadcast signals over a short distance with limited power output, often used in personal or localized broadcasting scenarios.

GEO

Stands for Geostationary Earth Orbit, a type of orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.

LEO

Low Earth Orbit, a region of space around the Earth at altitudes between 160 to 2,000 kilometers, often used for satellites that require close communication with Earth.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit (LEO) and below geostationary orbit (GEO), often used for satellites.