Identify Which of the Following Statements Is True

question 57

Multiple Choice

Identify which of the following statements is true.

• A)A contribution of services for a partnership interest is a tax-free transaction.
• B)For federal income tax purposes, formation of a partnership is governed by Sec. 721.
• C)When a partnership assumes a liability on property contributed by a partner, the only effect on the contributing partner's basis in his or her partnership interest is that his or her basis will be increased by the amount of the liability assumed by the other partners.
• D)All of the above are false.

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Definitions:

Global Network

A worldwide interconnected system or organization allowing for global communication, cooperation, or relationships.

World Wide Web

A system of interlinked hypertext documents accessed through the Internet, facilitating access to information and communication globally.

Virtual Offices

A service that provides businesses with a physical address and office-related services without the need for a dedicated physical space.

Technology Hub

A region or city known for its concentration of technology companies and startups, fostering innovation and economic growth.