A Contribution of Services to a Partnership Will Result in Recognition

question 9

True/False

A contribution of services to a partnership will result in recognition of compensation to the contributing partner equal to the fair market value of the services as well as an increase in partnership basis to the extent of the income recognized.

---

Definitions:

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, an important aspect of cognitive processing.

Intuitive Judgments

Decisions made based on one's instincts or gut feelings without the need for conscious reasoning or analysis.

Approach

A method or way of dealing with a particular problem or task.

Experience

The knowledge or skill acquired by a person over time through direct participation in events or activities.