Which of the Following Statements Regarding Liquidating Distributions Is True

question 97

Multiple Choice

Which of the following statements regarding liquidating distributions is true?

• A) A partner will recognize a gain when the partnership distributes only money and the amount is less than the partner's outside basis.
• B) A partner will recognize a gain when the partnership distributes money, hot assets, and other property and the inside bases of the distributed assets are greater than the partner's outside basis.
• C) A partner will recognize a gain when the partnership distributes only money and hot assets and the inside bases of the distributed assets are greater than the partner's outside basis.
• D) A partner will recognize a gain when the partnership distributes only money and the amount is greater than the partner's outside basis.

---

Definitions:

Freewriting

A kind of writing uninhibited by any constraints. Freewriting may be useful in overcoming writer’s block, among other things.

Formal Style

A manner of communication or presentation characterized by precision, clarity, and adherence to established conventions and protocols.

Administrative Writing

Writing used in administrative contexts, such as memos, reports, and emails, intended for organizational or management purposes.

Conversation

The informal exchange of ideas by spoken words between two or more people.