Which of the Following Statements Regarding Liquidating Distributions Is True

question 86

Multiple Choice

Which of the following statements regarding liquidating distributions is True?

• A) A partner will recognize a gain when the partnership distributes only money and the amount is greater than the partner's outside basis.
• B) A partner will recognize a gain when the partnership distributes only money and hot assets and the inside bases of the distributed assets are greater than the partner's outside basis.
• C) A partner will recognize a gain when the partnership distributes money, hot assets, and other property and the inside bases of the distributed assets are greater than the partner's outside basis.
• D) A partner will recognize a gain when the partnership distributes only money and the amount is less than the partner's outside basis.

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Definitions:

Cochlea

The spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into nerve impulses to be interpreted by the brain.

Trichromat

A person with normal color vision.

Dichromat

A person who is sensitive to black–white and either red–green or blue–yellow and hence is partially color–blind.

Bichromat

An individual with the ability to perceive only two of the three primary colors due to a form of color vision deficiency.