Which of the Following Distributions Would Never Result in Gain

question 110

Multiple Choice

Which of the following distributions would never result in gain recognition to the recipient (distributee) partner?

• A) A distribution of cash that follows a contribution of appreciated property to the partnership.
• B) A distribution of a slightly appreciated marketable security.
• C) A distribution of property to a partner who, three years ago, contributed other property with a built-in gain.
• D) A distribution to a second partner of property contributed by the first partner two years ago.
• E) A distribution of inventory property that is proportionate to the partners.

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Definitions:

Motivating Factors

Elements or conditions that induce an individual to act or perform in a certain manner, driving engagement and effort.

Invent New Options

The creation of additional alternatives or possibilities to enhance decision-making or problem-solving.

Interdependent

A situation or relationship where parties are mutually reliant on each other, such that the actions of one affect the outcomes for the other.

Trust

Reliance on the integrity, strength, ability, or surety of a person or thing; confidence.