Identify Which of the Following Statements Is True

question 88

Multiple Choice

Identify which of the following statements is true.

• A) Any distributive share of a loss that cannot be deducted by a partner because of the Sec. 704(d) basis loss limitation is permanently lost.
• B) Martin and Carlos formed an equal partnership to which Martin contributed $10,000 cash and Carlos contributed a building worth $10,000 with a basis of $2,000. In the first year of operation, the partnership suffered a $10,000 ordinary loss. Martin and Carlos can each deduct a $5,000 loss on their personal tax returns.
• C) When adjusting a partner's basis in a partnership interest, the negative basis adjustments are made prior to the positive basis adjustments.
• D) All of the above are false.

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Definitions:

Employment Equity

The employment of individuals in a fair and nonbiased manner.

Voluntary Self-Identification

An individual's choice to disclose personal information, typically related to demographics or diversity aspects, often for the purpose of workplace inclusion.

Representative Workforce

A workforce that reflects the demographic characteristics of the society in which it operates, including gender, race, and ethnicity.

Demographic Composition

The make-up or structure of a population based on characteristics such as age, gender, ethnicity, and income.