Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.
• B)The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.
• C)Unrealized receivables include rights to payments on the sale of a capital asset.
• D)All of the above are false.

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Definitions:

Drainage

The process of removing surplus water or liquid waste from an area or system.

Exudate

A fluid that leaks out of tissue or capillaries due to inflammation or injury.

Nephrons

The basic structural and functional units of the kidney, responsible for filtering blood and producing urine.

Glycosuria

Sugar in the urine.