Identify Which of the Following Statements Is False

question 30

Multiple Choice

Identify which of the following statements is false.

• A) The BB Partnership wants to make a special allocation of $10,000 of long- term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
• B) Partners must make up negative balances in their capital accounts upon liquidation of the partnership.
• C) Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
• D) In order to shift income/loss between partners, there must be substantial economic effect.

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Definitions:

Stimulants

Drugs that increase alertness, attention, and energy by elevating the levels of key chemicals in the brain and other parts of the body.

Psychedelic Drugs

Substances that alter perception, mood, and various aspects of the mind, often inducing vivid visual changes or hallucinations.

Hallucinogens

Psychedelic (“mind-manifesting”) drugs, such as LSD, that distort perceptions and evoke sensory images in the absence of sensory input.

Sensory Images

Mental representations or impressions formed from the input of the five senses, enabling visualization or a sensory experience in the absence of external stimuli.