Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.
• B)The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.
• C)Unrealized receivables include rights to payments on the sale of a capital asset.
• D)All of the above are false.

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Definitions:

Advances

Developments or progressions in a particular area, often leading to improvements or new insights.

Peer Influence

The effect that the social group an individual chooses or finds themselves in has on their behavior, attitudes, or values.

Future Orientation

The cognitive and emotional inclination to think about, plan, and prioritize the future over immediate needs or desires.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.