Identify Which of the Following Statements Is True

question 67

Multiple Choice

Identify which of the following statements is true.

• A)A partner's relief of debt is treated as if the partner receives a cash distribution.
• B)When a partnership assumes any liabilities of the transferor, the transferor has an increase in the basis of his or her partnership interest.
• C)Gain recognized by a contributing partner because of the assumption of liabilities by the partnership increases the partnership's basis in the contributed property.
• D)All of the above are false.

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Definitions:

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person concerned.

Overwhelming Fear

An intense fear that is so strong it controls or severely impacts one's behavior and decision-making.

Cardiac Arrest

This is a sudden loss of heart function, leading to a lack of blood flow and oxygen to the body's organs; it requires immediate medical attention.

Obsessive-Compulsive Disorder

A mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions) that the individual feels driven to perform.