Identify Which of the Following Statements Is True

question 33

Multiple Choice

Identify which of the following statements is true.

• A)If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.
• B)The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.
• C)When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.
• D)All of the above are false.

---

Definitions:

CNS

Central Nervous System, which comprises the brain and spinal cord, responsible for processing information and controlling the majority of functions of the body and mind.

Myelin Sheath

The myelin sheath is a protective covering made of fatty substances that surrounds nerve fibers, enhancing the speed and efficiency of electrical signal transmission along the nerve cells.

Action Potential

A rapid rise and subsequent fall in voltage or electrical charge across a cellular membrane, the basis for neural communication and muscle contraction.

Afterpotential

Afterpotential is the transient electrical polarization that follows the action potential in nerve cells or muscle fibers, impacting the cell's excitability.