Identify Which of the Following Statements Is True

question 74

Multiple Choice

Identify which of the following statements is true.

• A)The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
• B)A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
• C)When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
• D)All of the above are false.

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Definitions:

Teratogens

Agents or factors that cause or increase the risk of developmental abnormalities in a fetus.

Critical Period

A period so important to development that a harmful environmental influence at that time can keep a bodily structure from developing normally or can impair later intellectual or social development.

Personal Fable

A belief held by adolescents that they are unique, invulnerable, and can not be understood by others.