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.

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Definitions:

Private Sector

The part of a country's economic system that is run by individuals and companies, rather than by the government.

Private Organizations

Entities that operate independently of government control, often driven by private ownership or non-profit motives.

Medicare Coverage

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Federal Government

The national government of a federated state, which shares sovereignty with the individual sub-units (such as states or provinces) and which possesses the highest authority in the land under the constitution.