A Partner's Basis Is Increased by the Amount of Deductible

question 85

True/False

A partner's basis is increased by the amount of deductible loss that flows through from the partnership.

---

Definitions:

Projected Benefit Obligation

Represents an estimate of the total amount to be paid to participants in a defined benefit pension plan, based on employees' service and salary history.

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.

Pension Expense

An accounting charge representing the cost to a company of providing retirement benefits to employees during a particular time period.