Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A) Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• B) A partner's relief of debt is treated as if the partner receives a cash distribution.
• C) When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• D) All of the above are false.

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Definitions:

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