During the Current Year the Newport Partnership Is Liquidated

question 42

Multiple Choice

During the current year the Newport Partnership is liquidated. Which of the following statements is correct concerning the liquidation of the partnership?
I.If only cash is distributed by the partnership, the partners must recognize a gain but cannot recognize a loss.
II.Gain is recognized only if the amount of cash and property distributed exceeds the partner's basis in the partnership.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Interaction Effect

The phenomenon where the effect of one independent variable on the dependent variable differs depending on the level of another independent variable.

Dependent Variable

The variable in an experiment that is measured or observed to assess the effect of the independent variable.

Factorial Research Design

A study design that allows researchers to examine the effects of two or more independent variables simultaneously on dependent variables.

Main Effects

Refers to the individual impact of an independent variable on a dependent variable in an experiment or study.