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:

Locked Down

A security protocol in which access to and from a facility or area is severely restricted.

Ad Hoc Discipline

A form of discipline implemented for a particular purpose or situation, often characterized by a lack of comprehensive planning or consistency.

Bureaucratized System

A formally organized system governed by rules and hierarchy, characterizing a complex structure of offices and officials.

Prison Riots

Violent disturbances and uprisings by inmates within a prison, often in protest against conditions or treatment.