Which of the Following Statements Is Always Correct Regarding Assets

question 206

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.
• E) All of these statements are always true.

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Definitions:

Progression Principle

A concept in fitness and training that advocates for the gradual increase of the intensity, duration, and frequency of exercise for improved results.

Security

Measures taken to protect a company’s data, networks, and systems from theft, damage, or unauthorized access.

Stability

The condition of being steady, constant, and free from change or variation, often aimed for in both economic and organizational contexts.

Progression Principle

A concept in fitness and training that emphasizes the need for increasing the intensity and workload over time to achieve continued improvement.