Identify Which of the Following Statements Is True

question 9

Multiple Choice

Identify which of the following statements is true.

• A)Although a partner's basis in the partnership cannot go below zero, a partner's book capital account (equity)may be negative.
• B)Tom purchased for cash a 40% capital, profits, and loss interest in the TP General Partnership. His $140,000 basis in his partnership interest includes his $45,000 share of recourse debt and his $30,000 of nonrecourse debt (that is not qualified nonrecourse real estate financing). His at-risk basis cannot be more than $65,000.
• C)Terri is a limited partner in the STU Partnership, which manufactures children's toys. Because the partnership is actively involved in a trade or business, Terri's income from the partnership is classified as active income for the passive activity loss rules.
• D)All of the above are false.

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Definitions:

Mean Age

The average age of individuals in a population or group, calculated by adding their ages together and dividing by the number of individuals.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, indicating where the middle of the data set lies.

Variability

The degree to which data points in a statistical distribution or dataset differ from each other and from the average.

Standard Deviation

A measure of the dispersion or variation in a set of numbers, indicating how spread out the values are from the mean.