Identify Which of the Following Statements Is True

question 85

Multiple Choice

Identify which of the following statements is true.

• A) When partners receive cash distributions from the partnership, they pay taxes on those distributions.
• B) Distribution of partnership income in the form of cash to partners is generally tax- free to the partners and the partnership.
• C) If money distributions exceed the partner's basis in the partnership interest, the partner would have to recognize gain on the distribution from the partnership. Such gain is usually an ordinary gain.
• D) All of the above are true.

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Definitions:

Data Tables

Structures in software and databases designed to organize, store, and manage data in rows and columns for easy retrieval and analysis.

TIMEVALUE Function

A function in spreadsheet software that converts a time in the form of text to a serial number representing the time in the software's date-time code.

TODAY() Function

A programming and spreadsheet function that returns the current date, widely used in data analysis, time-sensitive calculations, and reporting.

MROUND

A function in Excel that rounds a number to the nearest multiple of a specified value.