Identify Which of the Following Statements Is True

question 57

Multiple Choice

Identify which of the following statements is true.

• A)A contribution of services for a partnership interest is a tax-free transaction.
• B)For federal income tax purposes, formation of a partnership is governed by Sec. 721.
• C)When a partnership assumes a liability on property contributed by a partner, the only effect on the contributing partner's basis in his or her partnership interest is that his or her basis will be increased by the amount of the liability assumed by the other partners.
• D)All of the above are false.

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Definitions:

Individual Salvation

Refers to the concept in various religions and philosophies where an individual seeks or attains liberation or salvation on a personal level, as opposed to through a collective community or institution.

Worldly Goods

Material possessions or wealth, often contrasted with spiritual or intangible values in philosophical and religious discourse.

Wabi

A Japanese aesthetic concept that focuses on the beauty of imperfection and transience, emphasizing simplicity, modesty, and the appreciation of the incomplete.

Sabi

Japanese; the value found in the old and weathered, suggesting the tranquility reached in old age.