Identify Which of the Following Statements Is True

question 33

Multiple Choice

Identify which of the following statements is true.

• A)If a partnership asset with a deferred precontribution gain is distributed in a nonliquidating distribution to the partner who contributed the asset, the precontribution gain must be recognized by the partner.
• B)The partner's basis in the partnership interest is normally reduced by the FMV of property distributed in a nonliquidating distribution.
• C)When a current distribution from a partnership reduces the basis of the partnership interest to zero, the partner's interest in the partnership is terminated.
• D)All of the above are false.

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Definitions:

Environmental Resistance

Factors in the environment that limit the growth, abundance, or distribution of an organism or population.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Population

Group of organisms of the same species occupying a certain area and sharing a common gene pool.

Community

A group of interdependent organisms living together in a particular area.