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.

---

Definitions:

Echoic Memory

A subtype of sensory memory that retains audio information for a few seconds after the sound is heard.

Visual Stimulation

Exposure to visual stimuli that influences a person's feelings, perception, or cognitive processes, often used in education, therapy, and entertainment.

Auditory Stimulation

The process of provoking a response through exposure to auditory stimuli, such as sounds or music.

Mnemonic Technique

A memory aid or strategy to make information easier to remember.