If a Partnership Incorporates, It Is Always Deemed to First

question 126

True/False

If a partnership incorporates, it is always deemed to first distribute all of its assets and liabilities to the partners in complete liquidation. Then the partners are deemed to contribute those assets to the new corporation (with the corporation assuming the related liabilities) in a transaction that qualifies under § 351.

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Definitions:

Carbohydrate

Organic compounds made up of carbon, hydrogen, and oxygen that serve as a major source of energy for the body.

Lactose

A sugar found in milk and dairy products, composed of glucose and galactose.

Organic Groups

Chemical groups containing carbon atoms bonded to hydrogen atoms, part of organic molecules.

Carbohydrate

A large group of organic compounds occurring in foods and living tissues, including sugars, starch, and cellulose. They are a major source of energy for the body.