Identify Which of the Following Statements Is True

question 48

Multiple Choice

Identify which of the following statements is true.

• A)When adjusting a partner's basis in a partnership interest, the negative basis adjustments are made prior to the positive basis adjustments.
• B)Martin and Carlos formed an equal partnership to which Martin contributed $10,000 cash and Carlos contributed a building worth $10,000 with a basis of $2,000. In the first year of operation, the partnership suffered a $10,000 ordinary loss. Martin and Carlos can each deduct a $5,000 loss on their personal tax returns.
• C)Any distributive share of a loss that cannot be deducted by a partner because of the Sec. 704(d)basis loss limitation is permanently lost.
• D)All of the above are false.

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Definitions:

Television Station

A set-up or facility for transmitting visual content and audio over the airwaves or through cable, aimed at reaching a wide audience.

Equal Time Rule

A policy that requires television and radio stations to provide equal broadcasting time to opposing political candidates during an election.

Political Office

A position of authority within a government organization or body that is either elected or appointed, carrying specific duties and powers.

Communicate

The process of sharing information, ideas, or feelings between individuals or groups, through various means such as speech, writing, or electronic media.