Identify Which of the Following Statements Is True

question 77

Multiple Choice

Identify which of the following statements is true.

• A)When unrealized receivables are distributed in a liquidating distribution, the basis of the receivables will be increased.
• B)The bases of unrealized receivables and inventory distributed by a partnership in liquidation of a partnership interest are never increased above their bases in the hands of the partnership.
• C)The basis of the partnership interest is apportioned between all of the assets received in a liquidating distribution based on the relative FMVs of the assets.
• D)All of the above are false.

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Definitions:

Labour Relations Board

A governmental body responsible for overseeing and enforcing labor and employment laws, including mediating disputes.

Compulsory Arbitration

A mandatory process where disputing parties must submit their conflict to arbitration, an alternative dispute resolution method, instead of going through the court system.

Right To Strike

The legal right of workers to cease work in order to gain concessions from their employer, such as higher pay or improved working conditions.

Right To Lockout

The legal right of an employer to deny employees access to the workplace during a dispute, as a counterpart to the right to strike.