Identify Which of the Following Statements Is True

question 3

Multiple Choice

Identify which of the following statements is true.

• A) For tax purposes, the partnership takes a carryover basis in the contributed property that references the contributing partner's basis.
• 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) 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.
• D) All of the above are false.

---

Definitions:

Currency Fluctuation

The variation in the exchange rate of one currency relative to another over time, influenced by economic factors, market demand, and geopolitical events.

Trade Restrictions

Government-imposed regulations that limit the free import and export of goods between countries, often to protect domestic industries.

Tariffs

Taxes on imports and exports between countries.

Duties

Responsibilities, tasks, or functions that an individual or organization is required or expected to perform.