Under the Entity Concept, a Partnership Interest Is an Intangible

question 19

True/False

Under the entity concept, a partnership interest is an intangible asset similar to an ownership interest in a corporation. As such, a partnership interest is generally treated as a capital asset, the disposal of which results in capital gain or loss.

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Definitions:

Isostasy

The equilibrium state of the Earth’s crust, where the forces pushing a land mass up are balanced by the weight of the mass itself pressing down.

Equanimity

A state of mental or emotional stability, especially in difficult situations.

Superposition

A principle in geology stating that in an undisturbed sequence of rocks, layers are older at the bottom and younger at the top.

Regional Elevations

The varying heights of the Earth's surface in a specific area, measured relative to sea level.