Identify Which of the Following Statements Is True

question 74

Multiple Choice

Identify which of the following statements is true.

• A)The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
• B)A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
• C)When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
• D)All of the above are false.

---

Definitions:

Theme Colors

A set of colors that is used throughout a document or presentation to maintain consistent visual appearance.

Report Layout

The structure and design of a report, determining how data is displayed, including the arrangement of fields, formatting, and style.

Conditional Formatting

A feature in spreadsheet and database software that changes the appearance of cells based on their values or other criteria, such as changing colors or adding icons.

Font Size

The measurement that specifies the height of characters in typography, typically expressed in points or pixels.