Identify Which of the Following Statements Is True

question 101

Multiple Choice

Identify which of the following statements is true.

• A) The contribution of Sec. 1245 property to a partnership triggers recognition of ordinary income by the contributor at the time of the transfer.
• B) When a partnership interest is given to a partner in exchange for services, the partnership can deduct or capitalize the FMV of the services, depending on the nature of the services.
• C) A partner may not recognize ordinary income when receiving a capital and profits interest in a partnership in exchange for services.
• D) All of the above are false.

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Definitions:

Military

The armed forces of a country, responsible for defending it from external threats and ensuring internal security.

Jackie Robinson

The first African American to play in Major League Baseball in the modern era, breaking the baseball color line when he started at first base for the Brooklyn Dodgers in 1947.

Dodgers

A professional baseball team based in Los Angeles, known for their rich history and passionate fanbase.

Death Threats

Statements or signals indicating the intent to kill or cause harm to someone.