Identify Which of the Following Statements Is True

question 93

Multiple Choice

Identify which of the following statements is true.

• A)John Albin is a retired partner of Brill & Crum, a personal service partnership. Albin has not rendered any services to Brill & Crum since his retirement six years ago. Under the provisions of Albin's retirement agreement, Brill & Crum is obligated to pay Albin 10% of the partnership's net income each year through the end of the current year. In compliance with the agreement, Brill & Crum pay Albin $25,000 in the current year. Albin should treat this $25,000 as a long-term capital gain.
• B)An exchange of partnership interests in different partnerships qualifies under the like-kind exchange rules.
• C)The payment for partnership property to a retiring partner is not deductible by the partnership and often not income to the retiring partner.
• D)All of the above are false.

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Definitions:

Thoracic Duct

The largest lymphatic vessel in the body, which drains lymph from the lower half of the body and the left upper part into the bloodstream.

Lymphatic Duct

A large vessel in the lymphatic system that drains lymph from the lymphatic vessels into the venous system.

Vena Cavae

The two major veins (superior vena cava and inferior vena cava) that carry deoxygenated blood from the body back to the heart.

Cisterna Chyli

A dilated sac at the lower end of the thoracic duct into which lymph from the intestinal trunk and two lumbar lymphatic trunks flows.