Which of the Following Statements Is True When Property Is

question 65

Multiple Choice

Which of the following statements is True when property is contributed in exchange for a partnership interest?

• A) Any contributed property in a partnership has a carryover basis, and the character of the property is determined by the way the contributing partner used the property.
• B) The partnership's inside basis is typically increased by any gain the partner recognizes from the property contribution.
• C) The holding period for a partner's partnership interest depends upon the type of assets a partner contributes.
• D) Services are not allowed to be contributed to a partnership in return for a partnership interest.
• E) All of the choices are True.

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Definitions:

Coercive Power

Coercive power is an authoritative strategy based on the fear of punishment or the enforcement of discipline to influence others to comply with demands or expectations.

Withhold Positive Outcomes

A strategy or action where expected or deserved positive results are deliberately not provided or delayed.

Influence

The capacity or power to affect or shape the behavior, development, character, or decisions of others or the outcome of events.

Power

The ability to influence or control the behavior of people, institutions, or events.