Identify Which of the Following Statements Is False

question 89

Multiple Choice

Identify which of the following statements is false.

• A)On June 30 of the current year, James Roe sells his interest in the Roe & Doe Partnership for $30,000. Roe's adjusted basis in Roe & Doe at June 30 is $7,500 before apportionment of any partnership income for the current year. The Roe & Doe Partnership uses the calendar year as its tax year and has no liabilities on June 30. Roe's distributive share of partnership income up to June 30 is $22,500. Roe acquired his interest in the partnership five years ago. Roe will have a long-term capital gain on the sale of his interest of $22,500.
• B)Section 751 assets include all inventory and all unrealized receivables in a sale or exchange situation.
• C)When a partnership interest is sold, the buyer and seller can allocate the sale price among the Sec. 751 assets and non-Sec. 751 assets in any reasonable manner.
• D)Statements B and C are true.

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Definitions:

Night Terrors

A sleep disorder causing feelings of terror or dread, typically occurring in the non-REM sleep phases, often accompanied by screaming or flailing and with little to no recollection of the dream content upon waking.

Nightmares

Distressing dreams that wake the sleeper, often involving feelings of fear, anxiety, or sorrow.

Uncontrollable Sleepiness

Excessive drowsiness that cannot easily be controlled or resisted, often indicative of underlying sleep disorders.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep, often with cataplexy.