A Partner That Receives Cash in an Operating Distribution Recognizes

question 62

True/False

A partner that receives cash in an operating distribution recognizes gain if the cash distributed exceeds the partner's outside basis in the partnership immediately before the distribution.

---

Definitions:

Verbal and Nonverbal Cues

The components of communication that involve spoken words and unspoken elements like tone, body language, and facial expressions, respectively.

Eyes

Organs of vision that allow for the perception of light, shapes, and colors.

Nonverbal Cues

Forms of communication without spoken words, such as facial expressions, gestures, posture, and eye contact, which convey feelings and intentions.

Stressed

Experiencing mental or emotional strain or tension resulting from adverse or demanding circumstances.