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.

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Definitions:

Descriptive Abstract

A brief summary of a document's content, focusing on describing its purpose, scope, and major findings without critique.

Lab Report

A document detailing the methodology, conduct, results, and conclusions of an experiment conducted in a laboratory setting.

Cohesive Argument

A logically structured argument that connects ideas smoothly and effectively, ensuring clear understanding and persuasiveness.

Linear Fashion

A manner of progression that moves in a straight, continuous line, typically referring to processes or narratives that follow a sequential order.