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.

---

Definitions:

Sexual Harassment

Unwanted or unwelcome sexual behavior, which can include physical or verbal actions, creating an offensive environment.

Dominant Element

refers to the primary or leading factor in a situation or relationship.

Power

The ability or capacity to influence or control the behavior of others or the course of events.