Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution.
• B)A partner's partnership capital account balance cannot be less than zero.
• C)The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property.
• D)All of the above are false.

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Definitions:

Tombstone Advertisement

A simple and straightforward advertisement typically used in the finance sector to announce a public offering.

Waiting Period

A designated period of time one must wait before a certain action can be taken or a particular benefit becomes effective.

Red-Herring Prospectus

A prospectus with a warning written in red print at the top of the page telling investors that the registration has been filed with the SEC but is not yet approved.

Warning

A notice given to inform someone of possible danger, risk, or other negative consequences that may occur.