Identify Which of the Following Statements Is True

question 21

Multiple Choice

Identify which of the following statements is true.

• A)The Hunter Partnership has a net long-term capital gain of $4,000 and a net short-term capital loss of $1,000 for the current tax year. The gain and loss will be netted and the partners will include their proportionate share of the $3,000 net long-term capital gain on their return.
• B)The Right Partnership sells a delivery truck and recognizes a gain of $2,000, which represents depreciation recaptured under Sec. 1245. The $2,000 gain will retain its identity as a separately stated item.
• C)For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis.
• D)All of the above are false.

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Definitions:

Western Front

Specifically pertaining to World War I, it was the primary theater of war during the conflict, marked by a line of trenches stretching from the North Sea to the Swiss frontier with France.

Mutinies

Acts of open rebellion against the proper authorities, especially by soldiers or sailors against their commanding officers.

France

A country in Western Europe known for its rich history, cultural significance, and as a global center for art, fashion, and cuisine.

George Curzon

A British Conservative statesman who served as Viceroy of India and was influential in the foreign policy of the early 20th century, focusing on expansion and defense of the British Empire.