Which of the Following Statements Is Always Correct Regarding Assets

question 12

Multiple Choice

Which of the following statements is always correct regarding assets acquired by a newly formed partnership? If a partner contributes:

• A)Depreciable property: the partnership treats the property as newly acquired depreciable property, and may claim a § 179 deduction.
• B)Unrealized (cash-basis) receivables: the partnership will report a capital gain when the receivable is collected.
• C)Inventory (in the partner's hands): the partnership reports ordinary income if the property is held as a capital asset and sold within five years of the contribution date.
• D)Land valued at less than its basis: the partnership reports a § 1231 loss if the property is sold at a loss.

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Definitions:

No. 10 Envelopes

A standard business envelope size in the United States, typically measuring 4 1/8 by 9 1/2 inches, used for mailing letters and documents.

Standard Letters

Pre-formatted letters used for common communication needs in professional settings, ensuring consistency and efficiency.

Left Margin

The space on the left side of a page in a document that sets the boundary for the start of text lines.

Block

In creative or cognitive processes, it refers to an impediment that prevents the generation of ideas or the continuation of work.