Identify Which of the Following Statements Is False

question 30

Multiple Choice

Identify which of the following statements is false.

• A) The BB Partnership wants to make a special allocation of $10,000 of long- term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
• B) Partners must make up negative balances in their capital accounts upon liquidation of the partnership.
• C) Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
• D) In order to shift income/loss between partners, there must be substantial economic effect.

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Definitions:

Heart Disease

A range of conditions that affect the heart, including blood vessel diseases, heart rhythm issues, and heart defects.

Difficulty In Speaking

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Stroke

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The measure of cholesterol in the blood, which can indicate risk for heart disease; includes measurements of LDL (bad) and HDL (good) cholesterol.