Identify Which of the Following Statements Is True

question 67

Multiple Choice

Identify which of the following statements is true.

• A)A partner's relief of debt is treated as if the partner receives a cash distribution.
• B)When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• C)Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• D)All of the above are false.

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Definitions:

Rooting Reflex

An innate reflex in newborns that prompts them to turn their head towards a touch on their cheek, facilitating the baby's search for a nipple to begin feeding.

Infant Son

A young male child in the earliest period of life, typically before he can walk or talk.

Cheek

A part of the face that lies below the eye and between the nose and ear, comprising the outer surface of the sides of the oral cavity.

Developmental Psychology

A branch of psychology that studies physical, cognitive, and social change throughout the life span.