Match the Following Statements with the Best Match from the Choices

question 47

Multiple Choice

Match the following statements with the best match from the choices below. Note: Choice L may be used more than once.
-Nonliquidating distribution

• A)Cash basis accounts receivable, for example.
• B)Fair market value exceeds 120% of basis.
• C)Inside basis of partnership property can be adjusted to reflect the purchase price paid.
• D)Terminates the partner's interest in the partnership.
• E)Ordinary income-producing items.
• F)Cash, then inventory and unrealized receivables, then other assets.
• G)Does not eliminate the partner's interest in the partnership.
• H)Liquidation of the partner's interest in hot assets.
• I)Changes the partner's or the partnership's ordinary income potential.
• J)Any partnership assets other than cash, capital, or § 1231 assets.
• K)Sometimes treated as an unrealized receivable.
• L)No correct match provided.

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Definitions:

Investment Centre

A business unit or division within an organization that is responsible for generating its own revenues and managing its own investments and expenses.

Profit Centre

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Cost-Plus Transfer Price

A pricing method where the selling price of a product is determined by adding a specific markup to the product's cost.

Market-Price Transfer

A pricing method used in transactions between divisions of the same company, based on prevailing market prices.