Under What Conditions Will a Partner Recognize a Gain in a Liquidating

question 38

Multiple Choice

Under what conditions will a partner recognize a gain in a liquidating distribution?

• A) When a partnership distributes money, hot assets, and other property and the amount of the distribution is less than the partner's outside basis.
• B) When a partnership distributes only money and the amount of the distribution exceeds the partner's outside basis.
• C) When a partnership distributes money, hot assets, and other property and the amount of the distribution exceeds the partner's outside basis.
• D) When a partnership distributes only money and the amount of the distribution is less than the partner's outside basis.

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Definitions:

Linear

Characterized by progression from one stage to another in a single series of steps; sequential.

Topic Sentence

A sentence that expresses the main idea of the paragraph in which it occurs, setting the tone for the paragraph's content.

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The coherence and consistency of ideas within a paragraph, ensuring that all sentences contribute to the paragraph's main idea.

Cause And Effect

A relationship where one event (the cause) leads to the outcome or consequence (the effect).