Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The basis for property distributed by a partnership cannot be increased above the carryover basis amount when it is received by a partner in a nonliquidating distribution.
• B)A partner's partnership capital account balance cannot be less than zero.
• C)The length of time a partner owns a partnership interest is relevant when determining the holding period for distributed property.
• D)All of the above are false.

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Definitions:

Oceanic Crust

The part of the Earth's crust that underlies the ocean basins, generally thinner and more dense than continental crust, formed at mid-ocean ridges and recycled into the mantle at subduction zones.

Sheeted Dikes

A geological formation consisting of numerous parallel dikes formed when magma intrudes into a crack then solidifies.

Subduction-derived Magma

Magma that is formed by the melting of subducted oceanic crust beneath a continental plate.

Belts of Volcanoes

Regions characterized by the alignment of multiple volcanoes, often situated along the boundaries of tectonic plates where volcanic activity is concentrated.