Identify Which of the Following Statements Is False

question 36

Multiple Choice

Identify which of the following statements is false.

• A)A sale or exchange of at least 50% of the capital and profits interest in a partnership within a 12- consecutive-month period will terminate the partnership and end all of the partnership's elections.
• B)When using the 50% rule to terminate a partnership, if an interest is sold more than once during the 12-month period, each sale is counted separately.
• C)A partner's individual income tax return, under some circumstances, may include the results of partnership operations for a period exceeding 12-months.
• D)When several different transfers are made during a 12-month period, the partnership termination occurs on the date of the transfer that first crosses the 50% threshold.

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Definitions:

Core Attributes

The fundamental qualities or characteristics that define an entity or concept, central to its identity or function.

Social Impact

The effect that other people have on our attitudes and behaviour, usually as a consequence of factors such as group size, and temporal and physical immediacy.

Convergent-Divergent Theory

explores the ability to generate multiple solutions to a problem (divergent thinking) versus the ability to find the single best solution (convergent thinking).

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.