Identify Which of the Following Statements Is False

question 79

Multiple Choice

Identify which of the following statements is false.

• A)Jean and Blossom form an equal partnership. Jean contributes $10,000 cash and Blossom contributes property with a $10,000 FMV and a $5,000 basis. When the partnership sells the property contributed by Blossom for $10,000 shortly after the formation, Blossom must include the $5,000 gain in her income.
• B)In order to shift income/loss between partners, there must be substantial economic effect.
• C)The BB Partnership wants to make a special allocation of $10,000 of long-term capital gain to Bob and a special allocation of $10,000 of ordinary income to Briana. This allocation will have a substantial economic effect.
• D)Partners must make up negative balances in their capital accounts upon liquidation of the partnership.

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Definitions:

Seniority System

A policy or practice where the length of time an individual has been employed within an organization affects their rights, benefits, and position within the company.

Title VII

Part of the Civil Rights Act of 1964, prohibiting employment discrimination based on race, color, religion, sex, and national origin.

Charge of Discrimination

A formal accusation filed with the EEOC alleging unlawful discrimination in the workplace.

Hostile Work Environment

A work setting where harassment or unwelcome conduct is pervasive enough to create a severely intimidating, hostile, or abusive situation affecting a person's job performance or psychological well-being.