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:

Crimes

Acts or omissions that violate laws and are punishable by the state or other authority.

Convicted

The formal declaration that someone is guilty of a criminal offense, made by the verdict of a jury or the decision of a judge.

Gang Members

Individuals who are part of an organized group known for committing criminal activities and occupying certain territories or social spaces.

Criminal Acts

Actions that are in violation of the laws of a society and are punishable by that society through its legal systems.