A Partner's Basis for His or Her Partnership Interest Is

question 41

True/False

A partner's basis for his or her partnership interest is increased by his share of the partnership's tax-exempt income.

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Definitions:

Normal Good

A good for which demand increases as consumer income rises.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to income changes.

Law Of Demand

An economic principle stating that, all else being equal, an increase in the price of a good or service will lead to a decrease in the quantity demanded, and vice versa.

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a certain price level within a specified time period.